1.1.................... moves to amend H.F. No. 318 as follows:
1.2Page 1, delete section 2 and insert:

1.3    "Sec. 2. Minnesota Statutes 2012, section 290.01, subdivision 19, as amended by Laws
1.42013, chapter 3, section 3, is amended to read:
1.5    Subd. 19. Net income. The term "net income" means the federal taxable income,
1.6as defined in section 63 of the Internal Revenue Code of 1986, as amended through the
1.7date named in this subdivision, incorporating the federal effective dates of changes to the
1.8Internal Revenue Code and any elections made by the taxpayer in accordance with the
1.9Internal Revenue Code in determining federal taxable income for federal income tax
1.10purposes, and with the modifications provided in subdivisions 19a to 19f.
1.11    In the case of a regulated investment company or a fund thereof, as defined in section
1.12851(a) or 851(g) of the Internal Revenue Code, federal taxable income means investment
1.13company taxable income as defined in section 852(b)(2) of the Internal Revenue Code,
1.14except that:
1.15    (1) the exclusion of net capital gain provided in section 852(b)(2)(A) of the Internal
1.16Revenue Code does not apply;
1.17    (2) the deduction for dividends paid under section 852(b)(2)(D) of the Internal
1.18Revenue Code must be applied by allowing a deduction for capital gain dividends and
1.19exempt-interest dividends as defined in sections 852(b)(3)(C) and 852(b)(5) of the Internal
1.20Revenue Code; and
1.21    (3) the deduction for dividends paid must also be applied in the amount of any
1.22undistributed capital gains which the regulated investment company elects to have treated
1.23as provided in section 852(b)(3)(D) of the Internal Revenue Code.
1.24    The net income of a real estate investment trust as defined and limited by section
1.25856(a), (b), and (c) of the Internal Revenue Code means the real estate investment trust
1.26taxable income as defined in section 857(b)(2) of the Internal Revenue Code.
2.1    The net income of a designated settlement fund as defined in section 468B(d) of
2.2the Internal Revenue Code means the gross income as defined in section 468B(b) of the
2.3Internal Revenue Code.
2.4    The Internal Revenue Code of 1986, as amended through April 14, 2011 January 3,
2.52013, shall be in effect for taxable years beginning after December 31, 1996, and before
2.6January 1, 2012, and for taxable years beginning after December 31, 2012. The Internal
2.7Revenue Code of 1986, as amended through January 3, 2013, is in effect for taxable years
2.8beginning after December 31, 2011, and before January 1, 2013.
2.9    Except as otherwise provided, references to the Internal Revenue Code in
2.10subdivisions 19 to 19f mean the code in effect for purposes of determining net income for
2.11the applicable year.
2.12EFFECTIVE DATE.This section is effective the day following final enactment,
2.13except the changes incorporated by federal changes are effective at the same time as the
2.14changes were effective for federal purposes."
2.15Page 3, line 27, strike everything after the comma
2.16Page 3, line 28, delete the new language and strike "under" and strike "63(c)(1)(E)
2.17of the Internal Revenue Code,"
2.18Page 3, delete line 33 and insert "purposes of this paragraph, income, and sales
2.19and use taxes are"
2.20Page 4, line 21, delete the new language
2.21Page 5, line 18, strike everything after the comma
2.22Page 5, line 19, delete the new language and strike "allowed under" and strike
2.23"63(c)(1)(E) of the Internal Revenue Code,"
2.24Page 6, line 29, delete the new language and reinstate the stricken language
2.25Page 6, line 31, reinstate the stricken language
2.26Page 6, line 33, delete "retroactively"
2.27Page 6, line 34, delete "2011" and insert "2012"
2.28Page 9, line 32, delete "(b)"
2.29Page 10, delete section 5
2.30Page 13, line 12, delete "retroactively"
2.31Page 13, line 13, delete "2011" and insert "2012"
2.32Page 13, line 18, delete ", and reduced" and insert a period
2.33Page 13, delete line 19
2.34Page 13, delete section 7 and insert:

3.1    "Sec. 6. Minnesota Statutes 2012, section 290.01, subdivision 31, as amended by Laws
3.22013, chapter 3, section 4, is amended to read:
3.3    Subd. 31. Internal Revenue Code. Unless specifically defined otherwise, for
3.4taxable years beginning before January 1, 2012, and after December 31, 2012, "Internal
3.5Revenue Code" means the Internal Revenue Code of 1986, as amended through April 14,
3.62011; and for taxable years beginning after December 31, 2011, and before January 1,
3.72013, "Internal Revenue Code" means the Internal Revenue Code of 1986, as amended
3.8through January 3, 2013. Internal Revenue Code also includes any uncodified provision in
3.9federal law that relates to provisions of the Internal Revenue Code that are incorporated
3.10into Minnesota law. When used in this chapter, the reference to "subtitle A, chapter 1,
3.11subchapter N, part 1, of the Internal Revenue Code" is to the Internal Revenue Code as
3.12amended through March 18, 2010.
3.13EFFECTIVE DATE.This section is effective the day following final enactment,
3.14except the changes incorporated by federal changes are effective at the same time as the
3.15changes were effective for federal purposes.

3.16    Sec. 7. Minnesota Statutes 2012, section 290.06, subdivision 2c, is amended to read:
3.17    Subd. 2c. Schedules of rates for individuals, estates, and trusts. (a) The income
3.18taxes imposed by this chapter upon married individuals filing joint returns and surviving
3.19spouses as defined in section 2(a) of the Internal Revenue Code must be computed by
3.20applying to their taxable net income the following schedule of rates:
3.21    (1) On the first $25,680 $31,840, 5.35 percent;
3.22    (2) On all over $25,680 $31,840, but not over $102,030 $118,120, 7.05 percent;
3.23    (3) On all over $102,030 $118,120, 7.85 percent.
3.24    Married individuals filing separate returns, estates, and trusts must compute their
3.25income tax by applying the above rates to their taxable income, except that the income
3.26brackets will be one-half of the above amounts.
3.27    (b) The income taxes imposed by this chapter upon unmarried individuals must be
3.28computed by applying to taxable net income the following schedule of rates:
3.29    (1) On the first $17,570 $21,780, 5.35 percent;
3.30    (2) On all over $17,570 $21,780, but not over $57,710 $66,810, 7.05 percent;
3.31    (3) On all over $57,710 $66,810, 7.85 percent.
3.32    (c) The income taxes imposed by this chapter upon unmarried individuals qualifying
3.33as a head of household as defined in section 2(b) of the Internal Revenue Code must be
3.34computed by applying to taxable net income the following schedule of rates:
3.35    (1) On the first $21,630 $26,810, 5.35 percent;
4.1    (2) On all over $21,630 $26,810, but not over $86,910 $100,610, 7.05 percent;
4.2    (3) On all over $86,910 $100,610, 7.85 percent.
4.3    (d) In lieu of a tax computed according to the rates set forth in this subdivision, the
4.4tax of any individual taxpayer whose taxable net income for the taxable year is less than
4.5an amount determined by the commissioner must be computed in accordance with tables
4.6prepared and issued by the commissioner of revenue based on income brackets of not
4.7more than $100. The amount of tax for each bracket shall be computed at the rates set
4.8forth in this subdivision, provided that the commissioner may disregard a fractional part of
4.9a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.
4.10    (e) An individual who is not a Minnesota resident for the entire year must compute
4.11the individual's Minnesota income tax as provided in this subdivision. After the
4.12application of the nonrefundable credits provided in this chapter, the tax liability must
4.13then be multiplied by a fraction in which:
4.14    (1) the numerator is the individual's Minnesota source federal adjusted gross income
4.15as defined in section 62 of the Internal Revenue Code and increased by the additions
4.16required under section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12),
4.17(13), and (16) to (18) (14) to (16), and reduced by the Minnesota assignable portion of
4.18the subtraction for United States government interest under section 290.01, subdivision
4.1919b , clause (1), and the subtractions under section 290.01, subdivision 19b, clauses (8),
4.20(9), (13), (14), (16), and (17), after applying the allocation and assignability provisions of
4.21section 290.081, clause (a), or 290.17; and
4.22    (2) the denominator is the individual's federal adjusted gross income as defined in
4.23section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in
4.24section 290.01, subdivision 19a, clauses (1), (5), (6), (7), (8), (9), (12), (13), and (16) to
4.25(18) (14) to (16), and reduced by the amounts specified in section 290.01, subdivision 19b,
4.26clauses (1), (8), (9), (13), (14), (16), and (17).
4.27EFFECTIVE DATE.This section is effective for taxable years beginning after
4.28December 31, 2012.

4.29    Sec. 8. Minnesota Statutes 2012, section 290.06, subdivision 2d, is amended to read:
4.30    Subd. 2d. Inflation adjustment of brackets. (a) For taxable years beginning after
4.31December 31, 2000 2013, the minimum and maximum dollar amounts for each rate
4.32bracket for which a tax is imposed in subdivision 2c shall be adjusted for inflation by the
4.33percentage determined under paragraph (b). For the purpose of making the adjustment as
4.34provided in this subdivision all of the rate brackets provided in subdivision 2c shall be the
4.35rate brackets as they existed for taxable years beginning after December 31, 1999 2012,
5.1and before January 1, 2001 2014. The rate applicable to any rate bracket must not be
5.2changed. The dollar amounts setting forth the tax shall be adjusted to reflect the changes
5.3in the rate brackets. The rate brackets as adjusted must be rounded to the nearest $10
5.4amount. If the rate bracket ends in $5, it must be rounded up to the nearest $10 amount.
5.5(b) The commissioner shall adjust the rate brackets and by the percentage determined
5.6pursuant to the provisions of section 1(f) of the Internal Revenue Code, except that in
5.7section 1(f)(3)(B) the word "1999" "2012" shall be substituted for the word "1992." For
5.82001 2014, the commissioner shall then determine the percent change from the 12 months
5.9ending on August 31, 1999 2012, to the 12 months ending on August 31, 2000 2013, and
5.10in each subsequent year, from the 12 months ending on August 31, 1999 2012, to the 12
5.11months ending on August 31 of the year preceding the taxable year. The determination of
5.12the commissioner pursuant to this subdivision shall not be considered a "rule" and shall
5.13not be subject to the Administrative Procedure Act contained in chapter 14.
5.14No later than December 15 of each year, the commissioner shall announce the
5.15specific percentage that will be used to adjust the tax rate brackets.
5.16EFFECTIVE DATE.This section is effective for taxable years beginning after
5.17December 31, 2012."
5.18Page 14, line 30, delete "the tax year" and insert "tax years"
5.19Page 15, line 7, reinstate the stricken language
5.20Page 15, line 8, before "2018" insert "and for tax years beginning after December
5.2131, 2012, and before January 1,"
5.22Page 15, line 11, reinstate the stricken language, and before "2018" insert ", and for
5.23tax years beginning after December 31, 2012, and before January 1,"
5.24Page 15, line 25, delete "retroactively"
5.25Page 15, line 26, delete "2011" and insert "2012"
5.26Page 15, delete section 9 and insert:

5.27    "Sec. 9. Minnesota Statutes 2012, section 290A.03, subdivision 15, as amended by
5.28Laws 2013, chapter 3, section 5, is amended to read:
5.29    Subd. 15. Internal Revenue Code. For taxable years beginning before January 1,
5.302012, and after December 31, 2012, "Internal Revenue Code" means the Internal Revenue
5.31Code of 1986, as amended through April 14, 2011; and for taxable years beginning after
5.32December 31, 2011, and before January 1, 2013, "Internal Revenue Code" means the
5.33Internal Revenue Code of 1986, as amended through January 3, 2013.
5.34EFFECTIVE DATE.This section is effective for property tax refunds based on
5.35property taxes payable after December 31, 2013, and rent paid after December 31, 2012."
6.1Page 17, delete section 11
6.2Renumber the sections in sequence and correct the internal references
6.3Amend the title accordingly