1.1                          A bill for an act 
  1.2             relating to taxes; proposing an amendment to the 
  1.3             Minnesota Constitution, article X; allowing a reverse 
  1.4             referendum to rescind increases in certain state tax 
  1.5             revenues; allowing a refund of rescinded revenue 
  1.6             increases; appropriating money; proposing coding for 
  1.7             new law in Minnesota Statutes, chapters 16A; 290. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  [CONSTITUTIONAL AMENDMENT.] 
  1.10     An amendment to the Minnesota Constitution, article X, by 
  1.11  adding a section, is proposed to the people.  If the amendment 
  1.12  is adopted, the new section will read as follows: 
  1.13     Sec. 9.  Notwithstanding section 1, a law may be enacted to 
  1.14  allow for a referendum or reverse referendum regarding increases 
  1.15  in state tax rates or state tax revenue collections.  
  1.16     Sec. 2.  [SUBMISSION TO VOTERS.] 
  1.17     The proposed amendment in section 1 must be submitted to 
  1.18  the people at the 2004 general election.  The question submitted 
  1.19  shall be: 
  1.20     "Shall the Minnesota Constitution be amended to authorize 
  1.21  the enactment of a law allowing voters to approve or disapprove 
  1.22  of increases in state tax rates or state tax revenue collections?
  1.23                                     Yes .......
  1.24                                     No ........"
  1.25     Sec. 3.  [16A.104] [REVERSE REFERENDUMS TO RESCIND REVENUE 
  1.26  INCREASES.] 
  2.1      Subdivision 1.  [DUTIES OF COMMISSIONER.] (a) Each year 
  2.2   within 21 days after the close of the regular legislative 
  2.3   session, the commissioner shall prepare an estimate of the 
  2.4   revenues that will be received in the current and next fiscal 
  2.5   years under the individual income tax and the general sales 
  2.6   tax.  If the estimated amount of revenue for the next fiscal 
  2.7   year for the taxes is estimated to exceed the revenues for the 
  2.8   current fiscal year by a percentage greater than the sum of the 
  2.9   percentage increase in the implicit price deflator and the 
  2.10  percentage increase in the number of households in the state, 
  2.11  the commissioner shall publish the estimated amount of the 
  2.12  increase in the State Register.  The estimate must be published 
  2.13  no later than 30 days after the close of the legislative session.
  2.14     (b) For purposes of this section, "percentage increase in 
  2.15  the implicit price deflator" means the percentage increase in 
  2.16  the implicit deflator for government consumption and gross 
  2.17  investment for state and local governments prepared by the 
  2.18  Bureau of Economic Analysis of the United States Department of 
  2.19  Commerce for the 12-month period ending on March 31 of the 
  2.20  current calendar year.  For purposes of this section, the 
  2.21  "percentage increase in the number of households" means the 
  2.22  percentage increase in the number of households in the state for 
  2.23  the most recently available calendar year as of March 31 of the 
  2.24  current calendar year. 
  2.25     Subd. 2.  [REVERSE REFERENDUM.] If a petition, signed by 
  2.26  eligible voters equal to ten percent of the registered voters in 
  2.27  the state, is filed with the secretary of state within 21 days 
  2.28  after the notice is published in the State Register, an election 
  2.29  must be held on whether the increase is to be refunded under 
  2.30  section 290.0676. 
  2.31     Subd. 3.  [ELECTION.] The election must be held on the 
  2.32  first Tuesday after the first Monday in November.  If a majority 
  2.33  of the voters at the election do not vote to sustain the tax 
  2.34  increase, the increase must be refunded as provided in section 
  2.35  290.0675. 
  2.36     Subd. 4.  [FORM OF PETITION AND BALLOT QUESTION.] The 
  3.1   secretary of state shall specify the form of the petition to be 
  3.2   used under subdivision 2.  The commissioner of finance shall 
  3.3   prepare the form of the question to be submitted to the voters. 
  3.4      <b>[EFFECTIVE DATE.]</b> This section is effective after approval 
  3.5   by the voters of the constitutional amendment in section 1. 
  3.6      Sec. 4.  [290.0676] [REFUND OF RESCINDED REVENUE 
  3.7   INCREASES.] 
  3.8      Subdivision 1.  [CREDIT ALLOWED.] If a majority of the 
  3.9   voters at an election under section 16A.104, subdivision 3, do 
  3.10  not vote to sustain the tax increase, an individual is allowed a 
  3.11  credit against the tax imposed by this chapter equal to the sum 
  3.12  of the allowable dollar amounts, determined under subdivision 3, 
  3.13  for each of the following: 
  3.14     (1) the taxpayer; 
  3.15     (2) the taxpayer's spouse for a credit claimed on a joint 
  3.16  return; and 
  3.17     (3) each dependent of the taxpayer. 
  3.18     Subd. 2.  [DEFINITION.] For purposes of this section, a 
  3.19  "dependent" means a dependent as defined in section 152 of the 
  3.20  Internal Revenue Code. 
  3.21     Subd. 3.  [DETERMINATION OF ALLOWABLE AMOUNT.] (a) If a 
  3.22  reverse referendum is to be submitted to the voters under 
  3.23  section 16A.104, the commissioner shall estimate the total 
  3.24  number of filers, spouses, and dependents for the current 
  3.25  taxable year. 
  3.26     (b) The allowable amount for the taxable year equals the 
  3.27  increase in revenues published in the State Register under 
  3.28  section 16A.104, divided by the number estimated under paragraph 
  3.29  (a). 
  3.30     Subd. 4.  [CREDIT REFUNDABLE.] If the claimant is eligible 
  3.31  to receive a credit that is larger than the claimant's tax 
  3.32  liability under this chapter, the commissioner shall refund the 
  3.33  excess to the claimant. 
  3.34     Subd. 5.  [DEPENDENT BARRED FROM CLAIMING OWN CREDIT.] No 
  3.35  credit may be paid to an individual claimed as a dependent on 
  3.36  the federal tax return of another individual. 
  4.1      Subd. 6.  [TAX FORMS.] If the issue is submitted to the 
  4.2   voters under section 16A.104, the commissioner shall include the 
  4.3   credit in the forms and tax instructions.  After the results of 
  4.4   the vote have been certified, the commissioner shall undertake 
  4.5   efforts to publicize whether or not the credit is available for 
  4.6   the taxable year.  This may include mailing a notice to each 
  4.7   taxpayer, advertising in print or electronic media, or other 
  4.8   measures. 
  4.9      Subd. 7.  [APPROPRIATION.] An amount sufficient to pay the 
  4.10  refunds required by this section is appropriated to the 
  4.11  commissioner from the general fund. 
  4.12     <b>[EFFECTIVE DATE.]</b> This section is effective after approval 
  4.13  by the voters of the constitutional amendment in section 1.