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S.F. No. 4010 - Income tax rate reduction based on forecast (as proposed to be amended by the A-2 amendment)
 
Author: Senator Roger C. Chamberlain
 
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
 
Date: April 24, 2018



 

This bill requires the commissioner of revenue to calculate income, corporate franchise, and alternative minimum tax rate reductions if certain criteria are met, in addition to the existing requirements for priority allocation of additional revenues under current law. Reductions must not exceed one percentage point for each rate.

The rate reductions will occur if, according to the November forecast, the amount of revenues exceeding expenditures, excluding carryforward amounts, at the end of the next two biennia (for a forecast in an even-numbered year), or the at end of a current biennium and subsequent biennium (for a forecast in an odd-numbered year) is greater than the revenue reduction resulting from the rate reduction.

The rate reduction would be enacted beginning with the taxable year beginning one year after the year following the forecast year, for reductions resulting from a forecast in an even-numbered year. For reductions resulting from a forecast in an odd-numbered year, the rate reduction would be enacted beginning with the taxable year of the year immediately following the forecast year.

Reductions must occur before budget reserve transfers. The commissioner must timely publish the new rates, and the revisor must update the rates in the next edition of Minnesota Statutes.

Effective the day following final enactment.

 

 
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