Minnesota Senate File 552 (S.F. 552) was introduced on February 18, 2013. The bill incorporates many of the provisions of Governor Mark Dayton's proposed 2014-15 budget. A companion bill, H.F. 677 was also introduced on February 18.
Minnesota taxpayers should be aware of the significant tax changes proposed by this legislation, including: reducing the corporate franchise tax rate, repealing foreign operating corporation provisions, including certain foreign entity income and apportionment attributes, reducing the sales tax rate, expanding the sales tax base to most services, expanding the commissioner's adjustment powers to allow for the disallowance of transactions without economic substance, implementing a noneconomic substance understatement penalty, and other tax changes. [Minnesota Senate Bill S.F. 552, for our summary of the governor's 2014-15 budget proposal, click here]