H.F. No. 4450 Summary

• Commissioner of revenue must reduce individual income tax rates and corporate franchise tax rate by one-tenth of one percent if November forecast conditions are met, with total reductions capped at one percent per rate.

• For even-numbered year forecasts, revenues must exceed expenditures at the close of the next biennium and subsequent biennium by an amount greater than estimated revenue loss from the rate cuts.

• For odd-numbered year forecasts, revenues must exceed expenditures at the close of the current biennium and subsequent biennium by an amount greater than estimated revenue loss from the rate cuts.

• Rate reductions from even-numbered year forecasts become effective for taxable years beginning one year after January 1 of the year following the forecast; reductions from odd-numbered year forecasts become effective January 1 of the year following the forecast.

• Commissioner must publish new tax rates in the State Register at least 30 days before the rate change takes effect, and revisor of statutes must update rates in the next edition of Minnesota Statutes.