Minnesota SF2585 proposes contingent reductions in the corporation franchise tax rate.

Minnesota SF2585 amends the corporation franchise tax rate by allowing for reductions if certain conditions are met. The tax rate may be reduced by 0.312 percent if the budget surplus equals or exceeds the net adjusted revenue reduction or if over 70 percent of the tax is allocated to consumers. The commissioner must publish notice of a rate reduction by December 31, and the adjusted rate takes effect for taxable years beginning after December 31 of the calendar year in which the notice is published. The tax rate cannot be reduced below 8.24 percent.

Minnesota SF2585 proposes contingent reductions in the corporation franchise tax rate.

Minnesota SF2585 amends the corporation franchise tax rate by allowing for reductions if certain conditions are met. The tax rate may be reduced by 0.312 percent if the budget surplus equals or exceeds the net adjusted revenue reduction or if over 70 percent of the tax is allocated to consumers. The commissioner must publish notice of a rate reduction by December 31, and the adjusted rate takes effect for taxable years beginning after December 31 of the calendar year in which the notice is published. The tax rate cannot be reduced below 8.24 percent.