Subdivision 1. Imposition. (a) In addition to the tax imposed by this chapter without regard to this section, the franchise tax imposed on a corporation required to file under section 289A.08, subdivision 3, other than a corporation treated as an "S" corporation under section 290.9725 for the taxable year includes a tax equal to the following amounts:
(b) A tax is imposed for each taxable year on a corporation required to file a return under section 289A.12, subdivision 3, that is treated as an S corporation under section 290.9725 and on a partnership required to file a return under section 289A.12, subdivision 3, other than a partnership that derives over 80 percent of its income from farming. The tax imposed under this paragraph is due on or before the due date of the return for the taxpayer due under section 289A.18, subdivision 1. The commissioner shall prescribe the return to be used for payment of this tax. The tax under this paragraph is equal to the following amounts:
(c) The commissioner shall annually adjust the dollar amounts of both the tax and the property, payrolls, and sales or receipts thresholds in paragraphs (a) and (b) as provided in section 270C.22. The statutory year is taxable year 2019. The tax amounts as adjusted must be rounded to the nearest $10 amount and the threshold amounts must be adjusted to the nearest $10,000 amount. For tax amounts that end in $5, the amount is rounded up to the nearest $10 amount and for the threshold amounts that end in $5,000, the amount is rounded up to the nearest $10,000.
Subd. 2. Exemptions. The following entities are exempt from the tax imposed by this section:
(1) corporations exempt from tax under section 290.05;
(2) real estate investment trusts;
(3) regulated investment companies or a fund thereof;
(4) entities having a valid election in effect under section 860D(b) of the Internal Revenue Code;
(5) township mutual insurance companies;
(6) cooperatives organized under chapter 308A or 308B that provide housing exclusively to persons age 55 and over and are classified as homesteads under section 273.124, subdivision 3; and
(7) a qualified business as defined under section 469.310, subdivision 11, if for the taxable year all of its property is located in a job opportunity building zone designated under section 469.314 and all of its payroll is a job opportunity building zone payroll under section 469.310.
Entities not specifically exempted by this subdivision are subject to tax under this section, notwithstanding section 290.05.
Subd. 3. Definitions. (a) "Minnesota sales or receipts" means the total sales apportioned to Minnesota pursuant to section 290.191, subdivision 5, the total receipts attributed to Minnesota pursuant to section 290.191, subdivisions 6 to 8, and/or the total sales or receipts apportioned or attributed to Minnesota pursuant to any other apportionment formula applicable to the taxpayer.
(b) "Minnesota property" means total Minnesota tangible property as provided in section 290.191, subdivisions 9 to 11, any other tangible property located in Minnesota, but does not include the property of a qualified business as defined under section 469.310, subdivision 11, that is located in a job opportunity building zone designated under section 469.314. Intangible property shall not be included in Minnesota property for purposes of this section. Taxpayers who do not utilize tangible property to apportion income shall nevertheless include Minnesota property for purposes of this section. On a return for a short taxable year, the amount of Minnesota property owned, as determined under section 290.191, shall be included in Minnesota property based on a fraction in which the numerator is the number of days in the short taxable year and the denominator is 365.
(c) "Minnesota payrolls" means total Minnesota payrolls as provided in section 290.191, subdivision 12, but does not include the job opportunity building zone payroll under section 469.310, subdivision 8, of a qualified business as defined under section 469.310, subdivision 11. Taxpayers who do not utilize payrolls to apportion income shall nevertheless include Minnesota payrolls for purposes of this section.
Subd. 4. Partner's pro rata share. For the purposes of this section, a partner's pro rata share of a partnership's property, payroll, and sales or receipts is not included in the property, payroll, and sales or receipts of the partner.
1990 c 604 art 2 s 12; 1991 c 291 art 6 s 31,46; art 7 s 15; 1992 c 511 art 6 s 14,19; art 7 s 18; 1993 c 375 art 8 s 14; 1994 c 587 art 1 s 24; 1996 c 471 art 1 s 7; art 9 s 1; 1997 c 231 art 6 s 14; 1Sp2001 c 5 art 9 s 17; 1Sp2003 c 21 art 1 s 11,12; art 2 s 7; 1Sp2005 c 3 art 3 s 12; art 10 s 10,11; 2006 c 259 art 13 s 4,5; 2011 c 112 art 6 s 5,6; 2012 c 294 art 2 s 16,17; 2013 c 143 art 6 s 25; 2014 c 308 art 9 s 68; 1Sp2017 c 1 art 14 s 3; 1Sp2019 c 6 art 1 s 54,73
Structure Minnesota Statutes
Chapters 289A - 295 — Various State Taxes And Programs
Chapter 290 — Income And Franchise Taxes
Section 290.0111 — Temporary Conformity To Certain Federal Tax Changes.
Section 290.0121 — Dependent Exemption.
Section 290.0122 — Itemized Deductions.
Section 290.0123 — Standard Deduction.
Section 290.0133 — Corporations; Additions To Federal Taxable Income.
Section 290.0134 — Corporations; Subtractions From Federal Taxable Income.
Section 290.0135 — Basis Modifications Affecting Gain Or Loss On Disposition Of Property.
Section 290.0136 — Certain Preferred Stock Losses.
Section 290.0137 — Accelerated Recognition Of Certain Installment Sale Gains.
Section 290.014 — Jurisdiction To Tax In General.
Section 290.015 — Minimum Contacts Required For Jurisdiction To Tax Trade Or Business.
Section 290.02 — Franchise Tax On Corporations Measured By Net Income.
Section 290.03 — Income Tax; Imposition, Classes Of Taxpayers.
Section 290.032 — Lump-sum Distribution Tax.
Section 290.04 — Liability For Tax.
Section 290.05 — Exempt Individuals, Organizations, Estates, Trusts.
Section 290.06 — Rates Of Tax; Credits.
Section 290.067 — Dependent Care Credit.
Section 290.0671 — Minnesota Working Family Credit.
Section 290.0672 — Long-term Care Insurance Credit.
Section 290.0674 — Minnesota Education Credit.
Section 290.0675 — Marriage Penalty Credit.
Section 290.0677 — Military Service Credits.
Section 290.0679 — Assignment Of Refund.
Section 290.068 — Credit For Increasing Research Activities.
Section 290.0681 — Credit For Historic Structure Rehabilitation.
Section 290.0682 — Student Loan Credit.
Section 290.0683 — Minnesota Housing Tax Credit.
Section 290.0684 — Section 529 Plan Credit.
Section 290.0685 — Credit For Parents Of Stillborn Children.
Section 290.0686 — Credit For Attaining Master's Degree In Teacher's Licensure Field.
Section 290.0692 — Small Business Investment Credit.
Section 290.07 — Net Income; Computation, Accounting Period.
Section 290.0802 — Subtraction For The Elderly And Disabled.
Section 290.081 — Income Of Nonresidents, Reciprocity.
Section 290.091 — Alternative Minimum Tax On Preference Items.
Section 290.0921 — Corporate Alternative Minimum Tax After 1989.
Section 290.0922 — Minimum Fee; Corporations; Partnerships.
Section 290.093 — Tax Computation For Mutual Savings Banks Conducting Life Insurance Business.
Section 290.095 — Operating Loss Deduction.
Section 290.10 — Nondeductible Items.
Section 290.17 — Gross Income, Allocation To State.
Section 290.172 — Commissioner Of Revenue.
Section 290.191 — Apportionment Of Net Income.
Section 290.20 — Net Income; Allocation To State.
Section 290.21 — Deductions Allowed To Corporations.
Section 290.22 — Estates And Trusts, Imposition Of Tax.
Section 290.26 — Exemption For Individual Retirement Account.
Section 290.281 — Common Trust Fund.
Section 290.30 — Fiduciaries, Duty To Pay Tax.
Section 290.31 — Partnerships; Individual Liability Of Partners.
Section 290.311 — Partnership Gross Income.
Section 290.32 — Taxes For Part Of Year, Computation.
Section 290.34 — Corporations, Special Provisions.
Section 290.371 — Notice Of Business Activities Report.
Section 290.431 — Nongame Wildlife Checkoff.
Section 290.432 — Corporate Nongame Wildlife Checkoff.
Section 290.48 — Large Amounts Of Cash; Presumption Of Jeopardy.
Section 290.491 — Tax On Gain; Discharge In Bankruptcy.
Section 290.62 — Distribution Of Revenues.
Section 290.92 — Tax Withheld At Source Upon Wages; Other Payments.
Section 290.9201 — Tax On Nonresident Entertainers.
Section 290.923 — Tax Withheld On Royalties Upon Ore.
Section 290.9705 — Surety Deposits Required For Construction Contracts.
Section 290.9725 — S Corporation.
Section 290.9726 — Corporation Taxable Income Taxed To Shareholders.
Section 290.9727 — Tax On Certain Built-in Gains.
Section 290.9728 — Tax On Capital Gains.
Section 290.9729 — Tax On Passive Investment Income.
Section 290.9741 — Election By Remic.
Section 290.9742 — Remic Income Taxable To Holders Of Interests.