Bill Text: MN HF2773 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Income tax conformed to individual retirement account rollover provisions.
Spectrum: Bipartisan Bill
Status: (Introduced - Dead) 2012-03-12 - Introduction and first reading, referred to Taxes [HF2773 Detail]
Download: Minnesota-2011-HF2773-Introduced.html
1.2relating to taxation; individual income; conforming to individual retirement
1.3account rollover provisions;amending Minnesota Statutes 2011 Supplement,
1.4sections 289A.02, subdivision 7; 290.01, subdivisions 19, 31; 290A.03,
1.5subdivision 15; 291.005, subdivision 1.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2011 Supplement, section 289A.02, subdivision 7,
1.8is amended to read:
1.9 Subd. 7. Internal Revenue Code. Unless specifically defined otherwise, "Internal
1.10Revenue Code" means the Internal Revenue Code of 1986, as amended throughApril 14,
1.112011 February 14, 2012.
1.12EFFECTIVE DATE.This section is effective the day following final enactment.
1.13 Sec. 2. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 19, is
1.14amended to read:
1.15 Subd. 19. Net income. The term "net income" means the federal taxable income,
1.16as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
1.17date named in this subdivision, incorporating the federal effective dates of changes to the
1.18Internal Revenue Code and any elections made by the taxpayer in accordance with the
1.19Internal Revenue Code in determining federal taxable income for federal income tax
1.20purposes, and with the modifications provided in subdivisions 19a to 19f.
1.21 In the case of a regulated investment company or a fund thereof, as defined in section
1.22851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
2.1company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
2.2except that:
2.3 (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
2.4Revenue Code does not apply;
2.5 (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
2.6Revenue Code must be applied by allowing a deduction for capital gain dividends and
2.7exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
2.8Revenue Code; and
2.9 (3) the deduction for dividends paid must also be applied in the amount of any
2.10undistributed capital gains which the regulated investment company elects to have treated
2.11as provided in section 852(b)(3)(D) of the Internal Revenue Code.
2.12 The net income of a real estate investment trust as defined and limited by section
2.13856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
2.14taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
2.15 The net income of a designated settlement fund as defined in section 468B(d) of
2.16the Internal Revenue Code means the gross income as defined in section 468B(b) of the
2.17Internal Revenue Code.
2.18 The Internal Revenue Code of 1986, as amended throughApril 14, 2011 February
2.1914, 2012, shall be in effect for taxable years beginning after December 31, 1996. The
2.20provisions of the act of January 22, 2010, Public Law 111-126, to accelerate the benefits
2.21for charitable cash contributions for the relief of victims of the Haitian earthquake, are
2.22effective at the same time they became effective for federal purposes and apply to the
2.23subtraction under subdivision 19b, clause (6). The provisions of title II, section 2112, of
2.24the act of September 27, 2010, Public Law 111-240, rollovers from elective deferral plans
2.25to designated Roth accounts, are effective at the same time they became effective for
2.26federal purposes and taxable rollovers are included in net income at the same time they
2.27are included in gross income for federal purposes. The provisions of title XI, section
2.281106, of the act of February 14, 2012, Public Law 112-95, rollover of amounts received
2.29in airline carrier bankruptcy, are effective at the same time they became effective for
2.30federal purposes and are excluded from net income at the same time they are excluded
2.31from gross income for federal purposes.
2.32 Except as otherwise provided, references to the Internal Revenue Code in
2.33subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
2.34the applicable year.
2.35EFFECTIVE DATE.This section is effective the day following final enactment.
3.1 Sec. 3. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 31, is
3.2amended to read:
3.3 Subd. 31. Internal Revenue Code. Unless specifically defined otherwise, "Internal
3.4Revenue Code" means the Internal Revenue Code of 1986, as amended throughApril 14,
3.52011 February 14, 2012. Internal Revenue Code also includes any uncodified provision in
3.6federal law that relates to provisions of the Internal Revenue Code that are incorporated
3.7into Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1,
3.8subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as
3.9amended through March 18, 2010.
3.10EFFECTIVE DATE.This section is effective the day following final enactment.
3.11 Sec. 4. Minnesota Statutes 2011 Supplement, section 290A.03, subdivision 15, is
3.12amended to read:
3.13 Subd. 15. Internal Revenue Code. "Internal Revenue Code" means the Internal
3.14Revenue Code of 1986, as amended throughApril 14, 2011 February 14, 2012.
3.15EFFECTIVE DATE.This section is effective the day following final enactment.
3.16 Sec. 5. Minnesota Statutes 2011 Supplement, section 291.005, subdivision 1, is
3.17amended to read:
3.18 Subdivision 1. Scope. Unless the context otherwise clearly requires, the following
3.19terms used in this chapter shall have the following meanings:
3.20 (1) "Commissioner" means the commissioner of revenue or any person to whom the
3.21commissioner has delegated functions under this chapter.
3.22 (2) "Federal gross estate" means the gross estate of a decedent as required to be
3.23valued and otherwise determined for federal estate tax purposes under the Internal
3.24Revenue Code.
3.25 (3) "Internal Revenue Code" means the United States Internal Revenue Code of
3.261986, as amended throughApril 14, 2011 February 14, 2012, but without regard to the
3.27provisions of sections 501 and 901 of Public Law 107-16, as amended by Public Law
3.28111-312, and section 301(c) of Public Law 111-312.
3.29 (4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as
3.30defined by section 2011(b)(3) of the Internal Revenue Code, plus
3.31(i) the amount of deduction for state death taxes allowed under section 2058 of
3.32the Internal Revenue Code; less
4.1(ii)(A) the value of qualified small business property under section291.03,
4.2subdivision 9 , and the value of qualified farm property under section
291.03, subdivision
4.310 , or (B) $4,000,000, whichever is less.
4.4 (5) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
4.5excluding therefrom any property included therein which has its situs outside Minnesota,
4.6and (b) including therein any property omitted from the federal gross estate which is
4.7includable therein, has its situs in Minnesota, and was not disclosed to federal taxing
4.8authorities.
4.9 (6) "Nonresident decedent" means an individual whose domicile at the time of
4.10death was not in Minnesota.
4.11 (7) "Personal representative" means the executor, administrator or other person
4.12appointed by the court to administer and dispose of the property of the decedent. If there
4.13is no executor, administrator or other person appointed, qualified, and acting within this
4.14state, then any person in actual or constructive possession of any property having a situs in
4.15this state which is included in the federal gross estate of the decedent shall be deemed
4.16to be a personal representative to the extent of the property and the Minnesota estate tax
4.17due with respect to the property.
4.18 (8) "Resident decedent" means an individual whose domicile at the time of death
4.19was in Minnesota.
4.20 (9) "Situs of property" means, with respect to real property, the state or country in
4.21which it is located; with respect to tangible personal property, the state or country in which
4.22it was normally kept or located at the time of the decedent's death; and with respect to
4.23intangible personal property, the state or country in which the decedent was domiciled
4.24at death.
4.25EFFECTIVE DATE.This section is effective the day following final enactment.
4.26 Sec. 6. AMENDED RETURNS; CERTAIN IRA ROLLOVERS.
4.27An individual who excludes an amount from net income in a prior taxable year
4.28through rollover of an airline payment amount to a traditional IRA, as authorized under
4.29Public Law 112-95, section 1106, may file an amended individual income tax return and
4.30claim for refund of state taxes as provided under Minnesota Statutes, section 289A.40,
4.31subdivision 1, or, if later, by April 15, 2013.
4.32EFFECTIVE DATE.This section is effective the day following final enactment.
1.3account rollover provisions;amending Minnesota Statutes 2011 Supplement,
1.4sections 289A.02, subdivision 7; 290.01, subdivisions 19, 31; 290A.03,
1.5subdivision 15; 291.005, subdivision 1.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2011 Supplement, section 289A.02, subdivision 7,
1.8is amended to read:
1.9 Subd. 7. Internal Revenue Code. Unless specifically defined otherwise, "Internal
1.10Revenue Code" means the Internal Revenue Code of 1986, as amended through
1.11
1.12EFFECTIVE DATE.This section is effective the day following final enactment.
1.13 Sec. 2. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 19, is
1.14amended to read:
1.15 Subd. 19. Net income. The term "net income" means the federal taxable income,
1.16as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
1.17date named in this subdivision, incorporating the federal effective dates of changes to the
1.18Internal Revenue Code and any elections made by the taxpayer in accordance with the
1.19Internal Revenue Code in determining federal taxable income for federal income tax
1.20purposes, and with the modifications provided in subdivisions 19a to 19f.
1.21 In the case of a regulated investment company or a fund thereof, as defined in section
1.22851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
2.1company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
2.2except that:
2.3 (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
2.4Revenue Code does not apply;
2.5 (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
2.6Revenue Code must be applied by allowing a deduction for capital gain dividends and
2.7exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
2.8Revenue Code; and
2.9 (3) the deduction for dividends paid must also be applied in the amount of any
2.10undistributed capital gains which the regulated investment company elects to have treated
2.11as provided in section 852(b)(3)(D) of the Internal Revenue Code.
2.12 The net income of a real estate investment trust as defined and limited by section
2.13856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
2.14taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
2.15 The net income of a designated settlement fund as defined in section 468B(d) of
2.16the Internal Revenue Code means the gross income as defined in section 468B(b) of the
2.17Internal Revenue Code.
2.18 The Internal Revenue Code of 1986, as amended through
2.1914, 2012, shall be in effect for taxable years beginning after December 31, 1996. The
2.20provisions of the act of January 22, 2010, Public Law 111-126, to accelerate the benefits
2.21for charitable cash contributions for the relief of victims of the Haitian earthquake, are
2.22effective at the same time they became effective for federal purposes and apply to the
2.23subtraction under subdivision 19b, clause (6). The provisions of title II, section 2112, of
2.24the act of September 27, 2010, Public Law 111-240, rollovers from elective deferral plans
2.25to designated Roth accounts, are effective at the same time they became effective for
2.26federal purposes and taxable rollovers are included in net income at the same time they
2.27are included in gross income for federal purposes. The provisions of title XI, section
2.281106, of the act of February 14, 2012, Public Law 112-95, rollover of amounts received
2.29in airline carrier bankruptcy, are effective at the same time they became effective for
2.30federal purposes and are excluded from net income at the same time they are excluded
2.31from gross income for federal purposes.
2.32 Except as otherwise provided, references to the Internal Revenue Code in
2.33subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
2.34the applicable year.
2.35EFFECTIVE DATE.This section is effective the day following final enactment.
3.1 Sec. 3. Minnesota Statutes 2011 Supplement, section 290.01, subdivision 31, is
3.2amended to read:
3.3 Subd. 31. Internal Revenue Code. Unless specifically defined otherwise, "Internal
3.4Revenue Code" means the Internal Revenue Code of 1986, as amended through
3.5
3.6federal law that relates to provisions of the Internal Revenue Code that are incorporated
3.7into Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1,
3.8subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as
3.9amended through March 18, 2010.
3.10EFFECTIVE DATE.This section is effective the day following final enactment.
3.11 Sec. 4. Minnesota Statutes 2011 Supplement, section 290A.03, subdivision 15, is
3.12amended to read:
3.13 Subd. 15. Internal Revenue Code. "Internal Revenue Code" means the Internal
3.14Revenue Code of 1986, as amended through
3.15EFFECTIVE DATE.This section is effective the day following final enactment.
3.16 Sec. 5. Minnesota Statutes 2011 Supplement, section 291.005, subdivision 1, is
3.17amended to read:
3.18 Subdivision 1. Scope. Unless the context otherwise clearly requires, the following
3.19terms used in this chapter shall have the following meanings:
3.20 (1) "Commissioner" means the commissioner of revenue or any person to whom the
3.21commissioner has delegated functions under this chapter.
3.22 (2) "Federal gross estate" means the gross estate of a decedent as required to be
3.23valued and otherwise determined for federal estate tax purposes under the Internal
3.24Revenue Code.
3.25 (3) "Internal Revenue Code" means the United States Internal Revenue Code of
3.261986, as amended through
3.27provisions of sections 501 and 901 of Public Law 107-16, as amended by Public Law
3.28111-312, and section 301(c) of Public Law 111-312.
3.29 (4) "Minnesota adjusted taxable estate" means federal adjusted taxable estate as
3.30defined by section 2011(b)(3) of the Internal Revenue Code, plus
3.31(i) the amount of deduction for state death taxes allowed under section 2058 of
3.32the Internal Revenue Code; less
4.1(ii)(A) the value of qualified small business property under section
4.2subdivision 9
4.310
4.4 (5) "Minnesota gross estate" means the federal gross estate of a decedent after (a)
4.5excluding therefrom any property included therein which has its situs outside Minnesota,
4.6and (b) including therein any property omitted from the federal gross estate which is
4.7includable therein, has its situs in Minnesota, and was not disclosed to federal taxing
4.8authorities.
4.9 (6) "Nonresident decedent" means an individual whose domicile at the time of
4.10death was not in Minnesota.
4.11 (7) "Personal representative" means the executor, administrator or other person
4.12appointed by the court to administer and dispose of the property of the decedent. If there
4.13is no executor, administrator or other person appointed, qualified, and acting within this
4.14state, then any person in actual or constructive possession of any property having a situs in
4.15this state which is included in the federal gross estate of the decedent shall be deemed
4.16to be a personal representative to the extent of the property and the Minnesota estate tax
4.17due with respect to the property.
4.18 (8) "Resident decedent" means an individual whose domicile at the time of death
4.19was in Minnesota.
4.20 (9) "Situs of property" means, with respect to real property, the state or country in
4.21which it is located; with respect to tangible personal property, the state or country in which
4.22it was normally kept or located at the time of the decedent's death; and with respect to
4.23intangible personal property, the state or country in which the decedent was domiciled
4.24at death.
4.25EFFECTIVE DATE.This section is effective the day following final enactment.
4.26 Sec. 6. AMENDED RETURNS; CERTAIN IRA ROLLOVERS.
4.27An individual who excludes an amount from net income in a prior taxable year
4.28through rollover of an airline payment amount to a traditional IRA, as authorized under
4.29Public Law 112-95, section 1106, may file an amended individual income tax return and
4.30claim for refund of state taxes as provided under Minnesota Statutes, section 289A.40,
4.31subdivision 1, or, if later, by April 15, 2013.
4.32EFFECTIVE DATE.This section is effective the day following final enactment.
