1.1 	A bill for an act
1.2 	relating to taxation; requiring a report by the
1.3 	Department of Revenue; creating a credit for
1.4 	contributions to the Explore Minnesota Tourism
1.5 	additional source fund; appropriating money; proposing
1.6 	coding for new law in Minnesota Statutes, chapter 290.
1.7 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.8 	Section 1. [290.0676] EXPLORE MINNESOTA TOURISM TAX
1.9 	CREDIT.
1.10 		Subdivision 1.Credit name. The credit allowed by this
1.11 	section shall be known as the "Explore Minnesota Tourism tax
1.12 	credit." 
1.13 		Subd. 2.Explore minnesota tourism additional source
1.14 	fund. (a) The Explore Minnesota Tourism additional source fund
1.15 	is created as a special account for contributions received under
1.16 	this section.  For the purposes of this section, "additional
1.17 	source fund" means the Explore Minnesota Tourism additional
1.18 	source fund.
1.19 	(b) Contributions made to Explore Minnesota Tourism under
1.20 	this section shall be:
1.21 	(1) deposited in the additional source fund;
1.22 	(2) kept separate from funds received through
1.23 	appropriations from the state; and 
1.24 	(3) used as a supplement to and not a replacement for funds
1.25 	received through appropriations from the state.
1.26 	(c) Funds in the additional source fund are annually
2.1 	appropriated to the director of Explore Minnesota Tourism for
2.2 	the purposes of chapter 116U.
2.3 	(d) Money from the additional source fund not expended at
2.4 	the end of each fiscal year, including interest earned on the
2.5 	investment of deposit of money in the additional source fund,
2.6 	does not cancel and is available until expended.
2.7 		Subd. 3.Credit allowed. For taxable years beginning
2.8 	after December 31, 2004, a taxpayer is allowed a credit against
2.9 	the tax imposed by this chapter in an amount equal to 100
2.10 	percent of the taxpayer's total contributions made to the
2.11 	Explore Minnesota Tourism additional source fund.  To claim the
2.12 	credit, the taxpayer must obtain a tax credit certificate as
2.13 	provided in subdivision 4.
2.14 		Subd. 4.Tax credit certificate. (a) In order to obtain
2.15 	a tax credit certificate for contributions to the additional
2.16 	source fund, prior to making the contribution, the taxpayer must
2.17 	submit a request with Explore Minnesota Tourism by providing:
2.18 	(1) the name of the taxpayer making the contribution;
2.19 	(2) the amount of the contribution the taxpayer intends to
2.20 	make; and 
2.21 	(3) any other information deemed necessary by the director
2.22 	of Explore Minnesota Tourism.
2.23 	(b) For each current state fiscal year, Explore Minnesota
2.24 	Tourism shall review each request by a taxpayer for an income
2.25 	tax credit certificate and determine the taxpayer's
2.26 	eligibility.  Explore Minnesota Tourism shall notify each
2.27 	taxpayer that intends to make a contribution to the additional
2.28 	source fund and claim a tax credit for the contribution under
2.29 	this section whether the taxpayer is eligible to claim a tax
2.30 	credit before the taxpayer makes the contribution.
2.31 	(c) A taxpayer is eligible to receive a tax credit
2.32 	certificate for contributions made to the additional source fund
2.33 	until a total of $10,000,000 in contributions has been
2.34 	contributed in that fiscal year.  Once a total of $10,000,000
2.35 	has been contributed to the additional source fund for that
2.36 	year, no further contributions by taxpayers are eligible for a
3.1 	tax credit certificate.
3.2 	(d) Explore Minnesota Tourism shall issue a tax credit
3.3 	certificate to every taxpayer that is eligible to claim an
3.4 	income tax credit pursuant to this section after the taxpayer
3.5 	makes a contribution to the additional source fund.  The total
3.6 	amount of tax credit certificates issued shall not exceed
3.7 	$10,000,000 in any state fiscal year.
3.8 	(e) Explore Minnesota Tourism may continue to accept
3.9 	contributions after $10,000,000 in tax credit certificates have
3.10 	been issued if Explore Minnesota Tourism notifies the
3.11 	contributors in writing that the contributions made are not
3.12 	eligible for tax credits under this section.
3.13 		Subd. 5.Claiming the credit. To receive the Explore
3.14 	Minnesota Tourism tax credit, the taxpayer must include the tax
3.15 	credit certificate from Explore Minnesota Tourism with the
3.16 	taxpayer's tax return form on which the taxpayer claims the
3.17 	credit under this section.  If the taxpayer files an electronic
3.18 	tax return, the taxpayer must provide the tax credit certificate
3.19 	to the Department of Revenue.  The Department of Revenue shall
3.20 	not allow a tax credit claimed pursuant to this section unless
3.21 	the taxpayer submits a tax credit certificate from Explore
3.22 	Minnesota Tourism to the Department of Revenue.
3.23 		Subd. 6.Limitations; carryover. If the amount of the
3.24 	credit allowed under this section exceeds the taxpayer's actual
3.25 	tax liability under this chapter in the tax year for which the
3.26 	credit is claimed, the amount of the credit that exceeds the tax
3.27 	liability shall not be refunded.  The amount of the credit that
3.28 	exceeds tax liability may be carried forward as a credit
3.29 	carryover against subsequent years' tax liability under this
3.30 	chapter for a period not to exceed three years.  The entire
3.31 	amount of the excess credit for the taxable year must be carried
3.32 	first to the earliest of the taxable years to which the amount
3.33 	may be carried, and then to each successive year.  Any amount of
3.34 	the credit that is not used during that period shall not be
3.35 	refundable to the taxpayer.
3.36 		Subd. 7.Monitoring. Within 30 days of the end of each
4.1 	quarter, the Department of Revenue shall provide Explore
4.2 	Minnesota Tourism with a quarterly report of comparisons of
4.3 	quarterly sales taxes collected under the Standard Industrial
4.4 	Classification System, or equivalent codes in the North America
4.5 	Industry Classification System, in the following areas:
4.6 	(1) SIC 70, lodging;
4.7 	(2) SIC 79, amusement and recreation; and 
4.8 	(3) SIC 58, eating and drinking.

4.9 	Sec. 2. EFFECTIVE DATE.
 4.10 	Section 1 is effective for taxable years beginning after
4.11 	December 31, 2004.