Bill Text: MN HF3167 | 2013-2014 | 88th Legislature | Introduced
NOTE: There are more recent revisions of this legislation. Read Latest Draft
Bill Title: Omnibus supplemental tax bill.
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Passed) 2014-05-20 - Secretary of State Chapter 308 [HF3167 Detail]
Download: Minnesota-2013-HF3167-Introduced.html
Bill Title: Omnibus supplemental tax bill.
Spectrum: Slight Partisan Bill (Democrat 3-1)
Status: (Passed) 2014-05-20 - Secretary of State Chapter 308 [HF3167 Detail]
Download: Minnesota-2013-HF3167-Introduced.html
1.2relating to state financial management; modifying priorities for additional
1.3revenues; providing for contingent transfers to the budget reserve;amending
1.4Minnesota Statutes 2012, section 16A.152, subdivisions 1a, 2, by adding a
1.5subdivision; repealing Minnesota Statutes 2012, section 16A.152, subdivision 1b.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 16A.152, subdivision 1a, is amended to
1.8read:
1.9 Subd. 1a. Budget reserve. A budget reserve account is created in the general fund
1.10in the state treasury. The target amount for the budget reserve account is five percent of
1.11general fund expenditures and transfers for the current biennium. The commissioner
1.12shall determine the target amount as part of each forecast of general fund revenues and
1.13expenditures under section 16A.103 and as part of the general fund balance analysis
1.14prepared after the end of each legislative session. The commissionerof management and
1.15budget shall transfer to the budget reserve account on July 1 of each odd-numbered year
1.16any amounts specifically appropriated by law to the budget reserve.
1.17 Sec. 2. Minnesota Statutes 2012, section 16A.152, subdivision 2, is amended to read:
1.18 Subd. 2. Additional revenues; priority. (a) If on the basis of a forecast of general
1.19fund revenues and expenditures, the commissionerof management and budget determines
1.20that there will be a positive unrestricted budgetary general fund balance at the close of
1.21the biennium, the commissionerof management and budget must allocate money to the
1.22following accounts and purposes in priority order:
1.23 (1) the cash flow account established in subdivision 1 until that account reaches
1.24$350,000,000;
2.1 (2) the budget reserve account established in subdivision 1a until that account
2.2reaches$653,000,000 $.......;
2.3 (3) the amount necessary to increase the aid payment schedule for school district
2.4aids and credits payments in section127A.45 to not more than 90 percent rounded to the
2.5nearest tenth of a percent without exceeding the amount available and with any remaining
2.6funds deposited in the budget reserve;
2.7 (4) the amount necessary to restore all or a portion of the net aid reductions under
2.8section127A.441 and to reduce the property tax revenue recognition shift under section
2.9123B.75, subdivision 5
, by the same amount; and
2.10(5) to thestate airports fund, the amount necessary to restore the amount transferred
2.11from the state airports fund under Laws 2008, chapter 363, article 11, section 3,
2.12subdivision 5 budget reserve account under subdivision 1a until the account reaches the
2.13target amount for the current biennium, but no more than ....... percent of the amount
2.14remaining after the requirement in clause (4) is satisfied.
2.15 (b) The amounts necessary to meet the requirements of this section are appropriated
2.16from the general fund within two weeks after the forecast is released or, in the case of
2.17transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
2.18schedules otherwise established in statute.
2.19 (c) The commissionerof management and budget shall certify the total dollar
2.20amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of
2.21education. The commissioner of education shall increase the aid payment percentage and
2.22reduce the property tax shift percentage by these amounts and apply those reductions to
2.23the current fiscal year and thereafter.
2.24 Sec. 3. Minnesota Statutes 2012, section 16A.152, is amended by adding a subdivision
2.25to read:
2.26 Subd. 9. Additional budget reserve transfers; extraordinary revenue. (a)
2.27Beginning with the November 2014 economic forecast and for each subsequent economic
2.28forecast, the commissioner of management and budget, in consultation with the
2.29commissioner of revenue, shall estimate:
2.30(1) the percentage of individual income tax revenues resulting from taxation of
2.31capital gains income for each fiscal year in the current biennium;
2.32(2) the percentage of individual income tax revenues resulting from taxation of
2.33capital gains income in each of the preceding five fiscal years; and
2.34(3) the average percentage of individual income revenues resulting from taxation of
2.35capital gains income over the preceding five fiscal years.
3.1 (b) If the commissioner estimates that the percentage of individual income tax
3.2revenues resulting from taxation of capital gains income in any fiscal year in the current
3.3biennium exceeds the average percentage over the preceding five fiscal years, then the
3.4commissioner must estimate the amount of excess capital gains, if any, for each fiscal year
3.5in the current biennium. Excess capital gains equals:
3.6(1) the percentage of individual income tax revenues resulting from taxation of
3.7capital gains income in the fiscal year; minus
3.8(2) the average percentage of individual income revenues resulting from taxation of
3.9capital gains income over the preceding five fiscal years; multiplied by
3.10(3) individual income tax revenues in the fiscal year.
3.11If the amount of excess capital gains for a fiscal year exceeds $5,000,000, the
3.12commissioner must transfer the excess over $5,000,000 to the budget reserve account until
3.13it reaches the target amount determined in subdivision 1a.
3.14(c) On or before October 31 of each fiscal year, the commissioner shall determine
3.15the following amounts:
3.16(1) the amount of net corporate franchise tax revenues collected in the prior fiscal
3.17year; and
3.18(2) 125 percent of the average annual amount of net corporate franchise tax revenues
3.19collected over the prior ten fiscal years.
3.20(d) If the commissioner determines that the amount under paragraph (c), clause
3.21(1), exceeds the amount under paragraph (c), clause (2), by more than $10,000,000, the
3.22commissioner must transfer the excess over $10,000,000 to the budget reserve account
3.23until it reaches the target amount determined in subdivision 1a. The commissioner must
3.24make the determinations under this paragraph immediately following the determinations
3.25under paragraph (c) and incorporate the transfers in preparation of the succeeding
3.26November forecast.
3.27 Sec. 4. REPEALER.
3.28Minnesota Statutes 2012, section 16A.152, subdivision 1b, is repealed.
1.3revenues; providing for contingent transfers to the budget reserve;amending
1.4Minnesota Statutes 2012, section 16A.152, subdivisions 1a, 2, by adding a
1.5subdivision; repealing Minnesota Statutes 2012, section 16A.152, subdivision 1b.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2012, section 16A.152, subdivision 1a, is amended to
1.8read:
1.9 Subd. 1a. Budget reserve. A budget reserve account is created in the general fund
1.10in the state treasury. The target amount for the budget reserve account is five percent of
1.11general fund expenditures and transfers for the current biennium. The commissioner
1.12shall determine the target amount as part of each forecast of general fund revenues and
1.13expenditures under section 16A.103 and as part of the general fund balance analysis
1.14prepared after the end of each legislative session. The commissioner
1.15
1.16any amounts specifically appropriated by law to the budget reserve.
1.17 Sec. 2. Minnesota Statutes 2012, section 16A.152, subdivision 2, is amended to read:
1.18 Subd. 2. Additional revenues; priority. (a) If on the basis of a forecast of general
1.19fund revenues and expenditures, the commissioner
1.20that there will be a positive unrestricted budgetary general fund balance at the close of
1.21the biennium, the commissioner
1.22following accounts and purposes in priority order:
1.23 (1) the cash flow account established in subdivision 1 until that account reaches
1.24$350,000,000;
2.1 (2) the budget reserve account established in subdivision 1a until that account
2.2reaches
2.3 (3) the amount necessary to increase the aid payment schedule for school district
2.4aids and credits payments in section
2.5nearest tenth of a percent without exceeding the amount available and with any remaining
2.6funds deposited in the budget reserve;
2.7 (4) the amount necessary to restore all or a portion of the net aid reductions under
2.8section
2.10(5) to the
2.11
2.12
2.13target amount for the current biennium, but no more than ....... percent of the amount
2.14remaining after the requirement in clause (4) is satisfied.
2.15 (b) The amounts necessary to meet the requirements of this section are appropriated
2.16from the general fund within two weeks after the forecast is released or, in the case of
2.17transfers under paragraph (a), clauses (3) and (4), as necessary to meet the appropriations
2.18schedules otherwise established in statute.
2.19 (c) The commissioner
2.20amount of the reductions under paragraph (a), clauses (3) and (4), to the commissioner of
2.21education. The commissioner of education shall increase the aid payment percentage and
2.22reduce the property tax shift percentage by these amounts and apply those reductions to
2.23the current fiscal year and thereafter.
2.24 Sec. 3. Minnesota Statutes 2012, section 16A.152, is amended by adding a subdivision
2.25to read:
2.26 Subd. 9. Additional budget reserve transfers; extraordinary revenue. (a)
2.27Beginning with the November 2014 economic forecast and for each subsequent economic
2.28forecast, the commissioner of management and budget, in consultation with the
2.29commissioner of revenue, shall estimate:
2.30(1) the percentage of individual income tax revenues resulting from taxation of
2.31capital gains income for each fiscal year in the current biennium;
2.32(2) the percentage of individual income tax revenues resulting from taxation of
2.33capital gains income in each of the preceding five fiscal years; and
2.34(3) the average percentage of individual income revenues resulting from taxation of
2.35capital gains income over the preceding five fiscal years.
3.1 (b) If the commissioner estimates that the percentage of individual income tax
3.2revenues resulting from taxation of capital gains income in any fiscal year in the current
3.3biennium exceeds the average percentage over the preceding five fiscal years, then the
3.4commissioner must estimate the amount of excess capital gains, if any, for each fiscal year
3.5in the current biennium. Excess capital gains equals:
3.6(1) the percentage of individual income tax revenues resulting from taxation of
3.7capital gains income in the fiscal year; minus
3.8(2) the average percentage of individual income revenues resulting from taxation of
3.9capital gains income over the preceding five fiscal years; multiplied by
3.10(3) individual income tax revenues in the fiscal year.
3.11If the amount of excess capital gains for a fiscal year exceeds $5,000,000, the
3.12commissioner must transfer the excess over $5,000,000 to the budget reserve account until
3.13it reaches the target amount determined in subdivision 1a.
3.14(c) On or before October 31 of each fiscal year, the commissioner shall determine
3.15the following amounts:
3.16(1) the amount of net corporate franchise tax revenues collected in the prior fiscal
3.17year; and
3.18(2) 125 percent of the average annual amount of net corporate franchise tax revenues
3.19collected over the prior ten fiscal years.
3.20(d) If the commissioner determines that the amount under paragraph (c), clause
3.21(1), exceeds the amount under paragraph (c), clause (2), by more than $10,000,000, the
3.22commissioner must transfer the excess over $10,000,000 to the budget reserve account
3.23until it reaches the target amount determined in subdivision 1a. The commissioner must
3.24make the determinations under this paragraph immediately following the determinations
3.25under paragraph (c) and incorporate the transfers in preparation of the succeeding
3.26November forecast.
3.27 Sec. 4. REPEALER.
3.28Minnesota Statutes 2012, section 16A.152, subdivision 1b, is repealed.
