Bill Text: MN HF1081 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Individual income tax rates reduced.
Spectrum: Partisan Bill (Democrat 1-0)
Status: (Introduced - Dead) 2011-03-14 - Introduction and first reading, referred to Taxes [HF1081 Detail]
Download: Minnesota-2011-HF1081-Introduced.html
1.2relating to taxation; individual income; reducing certain rates;amending
1.3Minnesota Statutes 2010, section 290.06, subdivision 2c.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 290.06, subdivision 2c, is amended to read:
1.6 Subd. 2c. Schedules of rates for individuals, estates, and trusts. (a) The income
1.7taxes imposed by this chapter upon married individuals filing joint returns and surviving
1.8spouses as defined in section 2(a) of the Internal Revenue Code must be computed by
1.9applying to their taxable net income the following schedule of rates:
1.10 (1) On the first $25,680,5.35 percent;
1.11 (2) On all over $25,680, but not over $102,030,7.05
1.12 (3) On all over $102,030,7.85 percent.
1.13 Married individuals filing separate returns, estates, and trusts must compute their
1.14income tax by applying the above rates to their taxable income, except that the income
1.15brackets will be one-half of the above amounts.
1.16 (b) The income taxes imposed by this chapter upon unmarried individuals must be
1.17computed by applying to taxable net income the following schedule of rates:
1.18 (1) On the first $17,570,5.35 percent;
1.19 (2) On all over $17,570, but not over $57,710,7.05
1.20 (3) On all over $57,710,7.85 percent.
1.21 (c) The income taxes imposed by this chapter upon unmarried individuals qualifying
1.22as a head of household as defined in section 2(b) of the Internal Revenue Code must be
1.23computed by applying to taxable net income the following schedule of rates:
1.24 (1) On the first $21,630,5.35 percent;
2.1 (2) On all over $21,630, but not over $86,910,7.05
2.2 (3) On all over $86,910,7.85 percent.
2.3 (d) In lieu of a tax computed according to the rates set forth in this subdivision, the
2.4tax of any individual taxpayer whose taxable net income for the taxable year is less than
2.5an amount determined by the commissioner must be computed in accordance with tables
2.6prepared and issued by the commissioner of revenue based on income brackets of not
2.7more than $100. The amount of tax for each bracket shall be computed at the rates set
2.8forth in this subdivision, provided that the commissioner may disregard a fractional part of
2.9a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.
2.10 (e) An individual who is not a Minnesota resident for the entire year must compute
2.11the individual's Minnesota income tax as provided in this subdivision. After the
2.12application of the nonrefundable credits provided in this chapter, the tax liability must
2.13then be multiplied by a fraction in which:
2.14 (1) the numerator is the individual's Minnesota source federal adjusted gross income
2.15as defined in section 62 of the Internal Revenue Code and increased by the additions
2.16required under section290.01, subdivision 19a , clauses (1), (5), (6), (7), (8), (9), (12),
2.17(13), (16), and (17), and reduced by the Minnesota assignable portion of the subtraction
2.18for United States government interest under section290.01, subdivision 19b , clause
2.19(1), and the subtractions under section290.01, subdivision 19b , clauses (8), (9), (13),
2.20(14), (15), and (17), after applying the allocation and assignability provisions of section
2.21290.081
, clause (a), or
290.17 ; and
2.22 (2) the denominator is the individual's federal adjusted gross income as defined in
2.23section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in
2.24section290.01, subdivision 19a , clauses (1), (5), (6), (7), (8), (9), (12), (13), (16), and
2.25(17), and reduced by the amounts specified in section290.01, subdivision 19b , clauses (1),
2.26(8), (9), (13), (14), (15), and (17).
2.27EFFECTIVE DATE.This section is effective for taxable years beginning after
2.28December 31, 2010.
1.3Minnesota Statutes 2010, section 290.06, subdivision 2c.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. Minnesota Statutes 2010, section 290.06, subdivision 2c, is amended to read:
1.6 Subd. 2c. Schedules of rates for individuals, estates, and trusts. (a) The income
1.7taxes imposed by this chapter upon married individuals filing joint returns and surviving
1.8spouses as defined in section 2(a) of the Internal Revenue Code must be computed by
1.9applying to their taxable net income the following schedule of rates:
1.10 (1) On the first $25,680,
1.11 (2) On all over $25,680, but not over $102,030,
1.12 (3) On all over $102,030,
1.13 Married individuals filing separate returns, estates, and trusts must compute their
1.14income tax by applying the above rates to their taxable income, except that the income
1.15brackets will be one-half of the above amounts.
1.16 (b) The income taxes imposed by this chapter upon unmarried individuals must be
1.17computed by applying to taxable net income the following schedule of rates:
1.18 (1) On the first $17,570,
1.19 (2) On all over $17,570, but not over $57,710,
1.20 (3) On all over $57,710,
1.21 (c) The income taxes imposed by this chapter upon unmarried individuals qualifying
1.22as a head of household as defined in section 2(b) of the Internal Revenue Code must be
1.23computed by applying to taxable net income the following schedule of rates:
1.24 (1) On the first $21,630,
2.1 (2) On all over $21,630, but not over $86,910,
2.2 (3) On all over $86,910,
2.3 (d) In lieu of a tax computed according to the rates set forth in this subdivision, the
2.4tax of any individual taxpayer whose taxable net income for the taxable year is less than
2.5an amount determined by the commissioner must be computed in accordance with tables
2.6prepared and issued by the commissioner of revenue based on income brackets of not
2.7more than $100. The amount of tax for each bracket shall be computed at the rates set
2.8forth in this subdivision, provided that the commissioner may disregard a fractional part of
2.9a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.
2.10 (e) An individual who is not a Minnesota resident for the entire year must compute
2.11the individual's Minnesota income tax as provided in this subdivision. After the
2.12application of the nonrefundable credits provided in this chapter, the tax liability must
2.13then be multiplied by a fraction in which:
2.14 (1) the numerator is the individual's Minnesota source federal adjusted gross income
2.15as defined in section 62 of the Internal Revenue Code and increased by the additions
2.16required under section
2.17(13), (16), and (17), and reduced by the Minnesota assignable portion of the subtraction
2.18for United States government interest under section
2.19(1), and the subtractions under section
2.20(14), (15), and (17), after applying the allocation and assignability provisions of section
2.22 (2) the denominator is the individual's federal adjusted gross income as defined in
2.23section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in
2.24section
2.25(17), and reduced by the amounts specified in section
2.26(8), (9), (13), (14), (15), and (17).
2.27EFFECTIVE DATE.This section is effective for taxable years beginning after
2.28December 31, 2010.
