Bill Summary

• Removes chapter 292 (gift tax) from Minnesota's definition of "Minnesota tax laws" and repeals all gift tax statutes (sections 292.16-292.21) effective for gifts made after June 30, 2013.

• Updates Internal Revenue Code reference date from April 14, 2011 to January 3, 2013 for Minnesota income tax purposes, applying retroactively to taxable years beginning after December 31, 2012.

• Eliminates several federal tax provisions that were previously added back to Minnesota income, including federal subsidies for prescription drug plans, tuition deductions, and teacher expense deductions.

• Removes sales tax on repair and maintenance services for electronic equipment, commercial/industrial machinery, and warehousing services (paragraph m of section 297A.61) effective retroactively for sales after June 30, 2013, with refund mechanism provided.

• Adds sales tax exemption for telecommunications and pay television service provider machinery and equipment used in providing services to be sold at retail.