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S.F. No. 1114 - Occupation Tax Credit
Author: Senator Justin D. Eichorn
Prepared By: Eric S. Silvia, Senate Counsel (651/296-1771)
Date: March 8, 2019


Sections 1 and 2 provide a credit against the occupation tax. The amount of the credit is equal to the lesser of:

  1. The amount of taconite production tax paid by the taxpayer during the taxable year;
  2. 15 cents per ton of the taconite produced in the calendar year prior to the taxable year in which the payment was made under clause (1); or
  3. The occupation tax liability for the taxable year after deduction of any carryover credit.

If the amount of the credit exceeds the tax liability for the taxable year, the excess is carried over to each of the following 15 taxable years.

Effective for taxable years beginning after December 31, 2018.

Section 3 provides that distributions of the occupation tax from the general fund must be made without regard to the effect on occupation tax revenue resulting from the credit in this proposal.  Under current law, of the amount of the occupation tax apportioned to the general fund, an amount equal to: (i) 1.5 cents per ton is dedicated for environmental or economic development loans or grants in Carlton and Koochiching counties; (ii) 2.5 cents per ton is dedicated to the Mining Environmental and Regulatory Account; and (iii) 6 cents per ton is dedicated to the Iron Range School Consolidation and Cooperatively Operated School Account.

Effective the day following final enactment.

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