Legislative Session number- 81

Bill Name: SF2144

Relating to taxationARTICLE 1 - INCOME TAXES Reducing individual income tax
rates and adjusting the brackets, requiring certain inflation adjustments;
reducing the alternative minimum tax (AMT) rate and increasing the exemption
amounts ARTICLE 2 - PROPERTY TAX REFORMModifying the general education tax rate
and levy formula, requiring general education levy amounts in excess of the tax
rate to be separately specified and levied against referendum market value;
basing the referendum equalization levy on the adjusted referendum market value
per resident pupil unit; providing for school district categorical program, net
tax capacity levy and market value levies; requiring separate certification of
debt levies and levying against market value; requiring the department of
revenue based on results of the assessment sales ratio study to determine the
equalized referendum market value for each school district for designation as
the adjusted referendum market value; reducing the property tax classification
rates for certain residential and agricultural homestead, commercial industrial,
apartment, residential nonhomestead, commercial and noncommercial seasonal
residential recreational and personal property, eliminating the separate
classification of certain property converted from nonresidential to residential
use and increasing the education homestead credit; providing a credit for debt
service and referendum levies on agricultural property, appropriating money to
the commissioner of children, families and learning to make the credit aid
payments to school districts; providing for a market value tax, requiring the
levying of certain excess taxes against market value, separate identification
requirement; appropriating money to the commissioner of children, families and
learning to fund a reduction in the statewide general education property tax
levy; repealing the transition class rate for low income housing and the
education homestead credit percentage reduction requirement ARTICLE 3 - SALES
AND EXCISE TAXESEliminating the accelerated June payment liability of retailers
for sales, liquor and tobacco taxes; modifying the administration of the sales
tax exemption for capital equipment; exempting personal property used in the
production of television commercials from the sales tax ARTICLE 4 - PASSENGER
AUTOMOBILE REGISTRATION TAXImposing a flat motor vehicle registration tax on
passenger automobiles after initial registration; transferring certain specified
amounts from the general fund to the highway user tax distribution fund ARTICLE
5 - CORPORATE FRANCHISE TAXProviding a corporate franchise tax election to treat
all income as business income, providing for the treatment of pre-1999
returnsARTICLE 6 - AUTOMATIC REBATE IN ENACTED BUDGETProviding for automatic
rebate of certain excess positive unrestricted budgetary general fund balances
to taxpayers at the end of the biennium; specifying certain rebate requirements
and certain duties of the commissioner of finance; requiring deposit of the
amount of positive unrestricted budgetary general fund balance below the amount
designated as eligible for refund in the tax relief account; appropriating money
to the commissioner of revenue to make the payments ARTICLE 7 - REPEAL OF
MINNESOTACARE TAXESEliminating the insurance gross premium tax on health
maintenance organizations (HMO), community integrated service networks (CISN)
and nonprofit health service plan corporations and exempting certain additional
health plans from the tax; eliminating the MinnesotaCare gross earnings tax on
hospitals and health care providers, providing for actual and projected
appropriations for the program; repealing the health care access fund, requiring
transfer of funds by the commissioner of finance to the general fund and
specifying certain term substitution instructions to the revisor of statutes
(ra)