Minnesota HF1131 proposes contingent reductions to the corporate franchise tax rate based on budget surplus and tax incidence reports.

Minnesota HF1131 amends the corporate franchise tax by allowing the commissioner to reduce the tax rate if certain conditions are met. The rate may be reduced by 0.312 percent if the budget surplus equals or exceeds the net adjusted revenue reduction or if a tax incidence report shows over 70 percent of the tax burden falls on consumers. The adjusted rate cannot fall below 8.24 percent. The commissioner must publish notice of any rate reduction by December 31, and the new rate takes effect for taxable years beginning after December 31 of the year the notice is published.

Minnesota HF1131 proposes contingent reductions to the corporate franchise tax rate based on budget surplus and tax incidence reports.

Minnesota HF1131 amends the corporate franchise tax by allowing the commissioner to reduce the tax rate if certain conditions are met. The rate may be reduced by 0.312 percent if the budget surplus equals or exceeds the net adjusted revenue reduction or if a tax incidence report shows over 70 percent of the tax burden falls on consumers. The adjusted rate cannot fall below 8.24 percent. The commissioner must publish notice of any rate reduction by December 31, and the new rate takes effect for taxable years beginning after December 31 of the year the notice is published.