MN SF4045

Commissioner of revenue must reduce individual income tax rates, corporate franchise tax rate, and alternative minimum tax rates by 0.1 percentage point if November forecast shows general fund revenues exceed expenditures by more than the revenue loss from the rate cuts.

For even-numbered year forecasts, revenues must exceed expenditures at the close of the next two biennia by an amount greater than the estimated revenue reduction from 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 the estimated revenue reduction from rate cuts.

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

Total cumulative rate reductions under this provision shall not exceed one percentage point for each tax rate, and rate reductions occur before any budget reserve account transfers.