as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am
1.1 A bill for an act 1.2 relating to taxation; corporate franchise; adopting 1.3 single factor sales apportionment; amending Minnesota 1.4 Statutes 1999 Supplement, section 290.191, 1.5 subdivisions 2 and 3; repealing Minnesota Statutes 1.6 1998, section 290.191, subdivision 4. 1.7 BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 1.8 Section 1. Minnesota Statutes 1999 Supplement, section 1.9 290.191, subdivision 2, is amended to read: 1.10 Subd. 2. [APPORTIONMENT FORMULA OF GENERAL APPLICATION.] 1.11 Except for those trades or businesses required to use a 1.12 different formula under subdivision 3 or section 290.35 or 1.13 290.36, and for those trades or businesses that receive 1.14 permission to use some other method under section 290.20or1.15under subdivision 4, a trade or business required to apportion 1.16 its net income must apportion its income to this state on the 1.17 basis ofthe percentage obtained by taking the sum of:1.18(1) 75 percent of the percentage whichthe sales made 1.19 within this state in connection with the trade or business 1.20 during the tax period are of the total sales wherever made in 1.21 connection with the trade or business during the tax period;1.22(2) 12.5 percent of the percentage which the total tangible1.23property used by the taxpayer in this state in connection with1.24the trade or business during the tax period is of the total1.25tangible property, wherever located, used by the taxpayer in1.26connection with the trade or business during the tax period; and2.1(3) 12.5 percent of the percentage which the taxpayer's2.2total payrolls paid or incurred in this state or paid in respect2.3to labor performed in this state in connection with the trade or2.4business during the tax period are of the taxpayer's total2.5payrolls paid or incurred in connection with the trade or2.6business during the tax period. 2.7 Sec. 2. Minnesota Statutes 1999 Supplement, section 2.8 290.191, subdivision 3, is amended to read: 2.9 Subd. 3. [APPORTIONMENT FORMULA FOR FINANCIAL 2.10 INSTITUTIONS.] Except for an investment company required to 2.11 apportion its income under section 290.36, a financial 2.12 institution that is required to apportion its net income must 2.13 apportion its net income to this state on the basis of the 2.14 percentageobtained by taking the sum of:2.15(1) 75 percent of the percentagewhich the receipts from 2.16 within this state in connection with the trade or business 2.17 during the tax period are of the total receipts in connection 2.18 with the trade or business during the tax period, from wherever 2.19 derived;2.20(2) 12.5 percent of the percentage which the sum of the2.21total tangible property used by the taxpayer in this state and2.22the intangible property owned by the taxpayer and attributed to2.23this state in connection with the trade or business during the2.24tax period is of the sum of the total tangible property,2.25wherever located, used by the taxpayer and the intangible2.26property owned by the taxpayer and attributed to all states in2.27connection with the trade or business during the tax period; and2.28(3) 12.5 percent of the percentage which the taxpayer's2.29total payrolls paid or incurred in this state or paid in respect2.30to labor performed in this state in connection with the trade or2.31business during the tax period are of the taxpayer's total2.32payrolls paid or incurred in connection with the trade or2.33business during the tax period. 2.34 Sec. 3. [REPEALER.] 2.35 Minnesota Statutes 1998, section 290.191, subdivision 4, is 2.36 repealed. 3.1 Sec. 4. [EFFECTIVE DATE.] 3.2 Sections 1 to 3 are effective for taxable years beginning 3.3 after December 31, 1999, and supersede the provisions of Laws 3.4 1999, chapter 243, article 2, sections 24, 25, and 32, paragraph 3.5 (g).