Senate Counsel, Research
and Fiscal Analysis
Minnesota Senate Bldg.
95 University Avenue W. Suite 3300
St. Paul, MN 55155
(651) 296-4791
Tom Bottern
Director
   Senate   
State of Minnesota
 
 
 
 
 
S.F. No. 2028 - Apportionment of Compensation for Nonresident Corporate Board Members
 
Author: Senator Ann H. Rest
 
Prepared By: Nora Pollock, Senate Counsel (651/297-8066)
 
Date: April 14, 2015



 

This bill provides a statutory method of income apportionment for nonresident corporate board members.  Under current Department of Revenue practice, a nonresident individual receiving compensation for serving on up to two corporate boards of directors is allowed to apportion income using an alternative method by dividing the time spent in Minnesota as a director on a corporate board by the total time spent as a director on a corporate board, and multiplying that fraction by the compensation paid for the board.  Service on boards of a unitary business are treated as serving on a single board.  The current apportionment method allowed does not apply to the apportionment of income for compensation on more than two boards.  Under this bill, the formula described above would apply for compensation for services as a member on all corporate boards of directors.  The bill is effective the day following final enactment and applies retroactively to all open taxable years and returns.

 
Check on the status of this bill
 
Back to Senate Counsel and Research Bill Summaries page
 

 
This page is maintained by the Office of Senate Counsel, Research, and Fiscal Analysis for the Minnesota Senate.
 
Last review or update: 04/14/2015
 
If you see any errors on this page, please e-mail us at webmaster@senate.mn