1.1.................... moves to amend H.F. No. 481, the delete everything amendment
1.2(A11-0139), as follows:
1.3Page 39, after line 5, insert:

1.4    "Sec. 9. Minnesota Statutes 2010, section 290.17, subdivision 4, is amended to read:
1.5    Subd. 4. Unitary business principle. (a) If a trade or business conducted wholly
1.6within this state or partly within and partly without this state is part of a unitary business,
1.7the entire income of the unitary business is subject to apportionment pursuant to section
1.8290.191 . Notwithstanding subdivision 2, paragraph (c), none of the income of a unitary
1.9business is considered to be derived from any particular source and none may be allocated
1.10to a particular place except as provided by the applicable apportionment formula. The
1.11provisions of this subdivision do not apply to business income subject to subdivision 5,
1.12income of an insurance company, or income of an investment company determined under
1.13section 290.36.
1.14(b) The term "unitary business" means business activities or operations which
1.15result in a flow of value between them. The term may be applied within a single legal
1.16entity or between multiple entities and without regard to whether each entity is a sole
1.17proprietorship, a corporation, a partnership or a trust.
1.18(c) Unity is presumed whenever there is unity of ownership, operation, and use,
1.19evidenced by centralized management or executive force, centralized purchasing,
1.20advertising, accounting, or other controlled interaction, but the absence of these
1.21centralized activities will not necessarily evidence a nonunitary business. Unity is also
1.22presumed when business activities or operations are of mutual benefit, dependent upon or
1.23contributory to one another, either individually or as a group.
1.24(d) Where a business operation conducted in Minnesota is owned by a business
1.25entity that carries on business activity outside the state different in kind from that
1.26conducted within this state, and the other business is conducted entirely outside the state, it
2.1is presumed that the two business operations are unitary in nature, interrelated, connected,
2.2and interdependent unless it can be shown to the contrary.
2.3(e) Unity of ownership is not deemed to exist when a corporation is involved unless
2.4that corporation is a member of a group of two or more business entities and more than 50
2.5percent of the voting stock of each member of the group is directly or indirectly owned
2.6by a common owner or by common owners, either corporate or noncorporate, or by one
2.7or more of the member corporations of the group. For this purpose, the term "voting
2.8stock" shall include membership interests of mutual insurance holding companies formed
2.9under section 66A.40.
2.10(f) The net income and apportionment factors under section 290.191 or 290.20 of
2.11foreign corporations and other foreign entities which are part of a unitary business shall
2.12not be included in the net income or the apportionment factors of the unitary business.
2.13A foreign corporation or other foreign entity which is required to file a return under this
2.14chapter shall file on a separate return basis. The net income and apportionment factors
2.15under section 290.191 or 290.20 of foreign operating corporations shall not be included in
2.16the net income or the apportionment factors of the unitary business except as provided in
2.17paragraph (g).
2.18(g) The adjusted net income of a foreign operating corporation shall be deemed to
2.19be paid as a dividend on the last day of its taxable year to each shareholder thereof, in
2.20proportion to each shareholder's ownership, with which such corporation is engaged in
2.21a unitary business. Such deemed dividend shall be treated as a dividend under section
2.22290.21, subdivision 4 .
2.23Dividends actually paid by a foreign operating corporation to a corporate shareholder
2.24which is a member of the same unitary business as the foreign operating corporation shall
2.25be eliminated from the net income of the unitary business in preparing a combined report
2.26for the unitary business. The adjusted net income of a foreign operating corporation
2.27shall be its net income adjusted as follows:
2.28(1) any taxes paid or accrued to a foreign country, the commonwealth of Puerto
2.29Rico, or a United States possession or political subdivision of any of the foregoing shall
2.30be a deduction; and
2.31(2) the subtraction from federal taxable income for payments received from foreign
2.32corporations or foreign operating corporations under section 290.01, subdivision 19d,
2.33clause (10), shall not be allowed.
2.34If a foreign operating corporation incurs a net loss, neither income nor deduction
2.35from that corporation shall be included in determining the net income of the unitary
2.36business.
3.1(h) For purposes of determining the net income of a unitary business and the factors
3.2to be used in the apportionment of net income pursuant to section 290.191 or 290.20, there
3.3must be included only the income and apportionment factors of domestic corporations or
3.4other domestic entities other than foreign operating corporations that are determined to
3.5be part of the unitary business pursuant to this subdivision, notwithstanding that foreign
3.6corporations or other foreign entities might be included in the unitary business.
3.7(i) Deductions for expenses, interest, or taxes otherwise allowable under this chapter
3.8that are connected with or allocable against dividends, deemed dividends described
3.9in paragraph (g), or royalties, fees, or other like income described in section 290.01,
3.10subdivision 19d , clause (10), shall not be disallowed.
3.11(j) Each corporation or other entity, except a sole proprietorship, that is part of a
3.12unitary business must file combined reports as the commissioner determines. On the
3.13reports, all intercompany transactions between entities included pursuant to paragraph
3.14(h) must be eliminated and the entire net income of the unitary business determined in
3.15accordance with this subdivision is apportioned among the entities by using each entity's
3.16Minnesota factors for apportionment purposes in the numerators of the apportionment
3.17formula and the total factors for apportionment purposes of all entities included pursuant
3.18to paragraph (h) in the denominators of the apportionment formula. The Minnesota sales,
3.19as defined in section 290.191, of a corporation that is part of a unitary business and that is
3.20not subject to the jurisdiction to tax under section 290.015 must be assigned, as prescribed
3.21by the commissioner, to the numerator of another entity that is part of the unitary business
3.22and that is subject to tax under this chapter.
3.23(k) If a corporation has been divested from a unitary business and is included in a
3.24combined report for a fractional part of the common accounting period of the combined
3.25report:
3.26(1) its income includable in the combined report is its income incurred for that part
3.27of the year determined by proration or separate accounting; and
3.28(2) its sales, property, and payroll included in the apportionment formula must
3.29be prorated or accounted for separately.
3.30EFFECTIVE DATE.This section is effective for taxable years beginning after
3.31December 31, 2010."
3.32Page 40, after line 13, insert:

3.33    "Section 1. Minnesota Statutes 2010, section 290A.04, subdivision 2, is amended to
3.34read:
4.1    Subd. 2. Homeowners. A claimant whose property taxes payable are in excess
4.2of the percentage of the household income stated below shall pay an amount equal to
4.3the percent of income shown for the appropriate household income level along with the
4.4percent to be paid by the claimant of the remaining amount of property taxes payable.
4.5The state refund equals the amount of property taxes payable that remain, up to the state
4.6refund amount shown below.

4.7 4.8 4.9	Household Income	Percent of Income	Percent Paid by Claimant	Maximum State Refund
4.10	$0 to 1,189	1.0 percent	15 percent	$	1,850
4.11	1,190 to 2,379	1.1 percent	15 percent	$	1,850
4.12	2,380 to 3,589	1.2 percent	15 percent	$	1,800
4.13	3,590 to 4,789	1.3 percent	20 percent	$	1,800
4.14	4,790 to 5,979	1.4 percent	20 percent	$	1,730
4.15	5,980 to 8,369	1.5 percent	20 percent	$	1,730
4.16	8,370 to 9,559	1.6 percent	25 percent	$	1,670
4.17	9,560 to 10,759	1.7 percent	25 percent	$	1,670
4.18	10,760 to 11,949	1.8 percent	25 percent	$	1,610
4.19	11,950 to 13,139	1.9 percent	30 percent	$	1,610
4.20	13,140 to 14,349	2.0 percent	30 percent	$	1,540
4.21	14,350 to 16,739	2.1 percent	30 percent	$	1,540
4.22	16,740 to 17,929	2.2 percent	35 percent	$	1,480
4.23	17,930 to 19,119	2.3 percent	35 percent	$	1,480
4.24	19,120 to 20,319	2.4 percent	35 percent	$	1,420
4.25	20,320 to 25,099	2.5 percent	40 percent	$	1,420
4.26	25,100 to 28,679	2.6 percent	40 percent	$	1,360
4.27	28,680 to 35,849	2.7 percent	40 percent	$	1,360
4.28	35,850 to 41,819	2.8 percent	45 percent	$	1,240
4.29	41,820 to 47,799	3.0 percent	45 percent	$	1,240
4.30	47,800 to 53,779	3.2 percent	45 percent	$	1,110
4.31	53,780 to 59,749	3.5 percent	50 percent	$	990
4.32	59,750 to 65,729	3.5 percent	50 percent	$	870
4.33	65,730 to 69,319	3.5 percent	50 percent	$	740
4.34	69,320 to 71,719	3.5 percent	50 percent	$	610
4.35	71,720 to 74,619	3.5 percent	50 percent	$	500
4.36	74,620 to 77,519	3.5 percent	50 percent	$	370

4.37 4.38 4.39	Household Income	Percent of Income	Percent Paid by Claimant	Maximum State Refund
4.40	$0 to 1,549	1.0 percent	15 percent	$	3,800
4.41	1,550 to 3,089	1.1 percent	15 percent	$	3,800
4.42	3,090 to 4,669	1.2 percent	15 percent	$	3,800
5.1	4,670 to 6,229	1.3 percent	20 percent	$	3,800
5.2	6,230 to 7,769	1.4 percent	20 percent	$	3,800
5.3	7,770 to 10,879	1.5 percent	20 percent	$	3,800
5.4	10,880 to 12,429	1.6 percent	25 percent	$	3,800
5.5	12,430 to 13,989	1.7 percent	25 percent	$	3,800
5.6	13,990 to 15,539	1.8 percent	25 percent	$	3,800
5.7	15,540 to 17,079	1.9 percent	30 percent	$	3,300
5.8	17,080 to 18,659	2.0 percent	30 percent	$	3,300
5.9	18,660 to 21,759	2.1 percent	30 percent	$	3,300
5.10	21,760 to 23,309	2.2 percent	30 percent	$	3,300
5.11	23,310 to 24,859	2.3 percent	30 percent	$	3,300
5.12	24,860 to 26,419	2.4 percent	30 percent	$	3,300
5.13	26,420 to 32,629	2.5 percent	35 percent	$	3,300
5.14	32,630 to 37,279	2.6 percent	35 percent	$	3,000
5.15	37,280 to 46,609	2.7 percent	35 percent	$	3,000
5.16	46,610 to 49,999	2.8 percent	35 percent	$	2,500
5.17	50,000 to 54,999	2.8 percent	35 percent	$	2,500
5.18	55,000 to 59,999	3.0 percent	40 percent	$	2,000
5.19	60,000 to 64,999	3.0 percent	40 percent	$	1,750
5.20	65,000 to 69,999	3.0 percent	40 percent	$	1,500
5.21	70,000 to 77,679	3.5 percent	50 percent	$	1,290
5.22	77,680 to 85,449	3.5 percent	50 percent	$	1,130
5.23	85,450 to 90,119	3.5 percent	50 percent	$	960
5.24	90,120 to 93,239	3.5 percent	50 percent	$	790
5.25	93,240 to 97,009	3.5 percent	50 percent	$	650
5.26	97,010 to 100,779	3.5 percent	50 percent	$	480

5.27    The payment made to a claimant shall be the amount of the state refund calculated
5.28under this subdivision. No payment is allowed if the claimant's household income is
5.29$77,520 $100,780 or more.
5.30EFFECTIVE DATE.This section is effective beginning with refunds based on
5.31taxes payable in 2012.

5.32    Sec. 2. Minnesota Statutes 2010, section 290A.04, subdivision 4, is amended to read:
5.33    Subd. 4. Inflation adjustment. (a) Beginning for property tax refunds payable in
5.34calendar year 2002, the commissioner shall annually adjust the dollar amounts of the
5.35income thresholds and the maximum refunds under subdivisions 2 and 2a for inflation.
5.36The commissioner shall make the inflation adjustments in accordance with section 1(f) of
5.37the Internal Revenue Code, except that for purposes of this subdivision the percentage
5.38increase shall be determined as provided in this subdivision.
6.1(b) In adjusting the dollar amounts of the income thresholds and the maximum
6.2refunds under subdivision 2 for inflation, the percentage increase shall be determined from
6.3the year ending on June 30, 2011, to the year ending on June 30 of the year preceding that
6.4in which the refund is payable.
6.5(c) In adjusting the dollar amounts of the income thresholds and the maximum
6.6refunds under subdivision 2a for inflation, the percentage increase shall be determined
6.7from the year ending on June 30, 2000, to the year ending on June 30 of the year preceding
6.8that in which the refund is payable.
6.9(d) The commissioner shall use the appropriate percentage increase to annually
6.10adjust the income thresholds and maximum refunds under subdivisions 2 and 2a for
6.11inflation without regard to whether or not the income tax brackets are adjusted for inflation
6.12in that year. The commissioner shall round the thresholds and the maximum amounts,
6.13as adjusted to the nearest $10 amount. If the amount ends in $5, the commissioner shall
6.14round it up to the next $10 amount.
6.15(e) The commissioner shall annually announce the adjusted refund schedule at the
6.16same time provided under section 290.06. The determination of the commissioner under
6.17this subdivision is not a rule under the Administrative Procedure Act.
6.18EFFECTIVE DATE.This section is effective beginning for refunds based on
6.19taxes payable in 2013."
6.20Renumber the sections in sequence and correct the internal references
6.21Amend the title accordingly