1.1    .................... moves to amend H. F. No. 1258 as follows:
1.2Page 12, delete section 8 and insert:

1.3    "Sec. 8. Minnesota Statutes 2006, section 290.06, subdivision 2c, is amended to read:
1.4    Subd. 2c. Schedules of rates for individuals, estates, and trusts. (a) The income
1.5taxes imposed by this chapter upon married individuals filing joint returns and surviving
1.6spouses as defined in section 2(a) of the Internal Revenue Code must be computed by
1.7applying to their taxable net income the following schedule of rates:
1.8    (1) On the first $25,680, 5.35 percent;
1.9    (2) On all over $25,680, but not over $102,030, 7.05 percent;
1.10    (3) On all over $102,030, 7.85 percent.
1.11    Married individuals filing separate returns, estates, and trusts must compute their
1.12income tax by applying the above rates to their taxable income, except that the income
1.13brackets will be one-half of the above amounts.
1.14    (b) The income taxes imposed by this chapter upon unmarried individuals must be
1.15computed by applying to taxable net income the following schedule of rates:
1.16    (1) On the first $17,570, 5.35 percent;
1.17    (2) On all over $17,570, but not over $57,710, 7.05 percent;
1.18    (3) On all over $57,710, 7.85 percent.
1.19    (c) The income taxes imposed by this chapter upon unmarried individuals qualifying
1.20as a head of household as defined in section 2(b) of the Internal Revenue Code must be
1.21computed by applying to taxable net income the following schedule of rates:
1.22    (1) On the first $21,630, 5.35 percent;
1.23    (2) On all over $21,630, but not over $86,910, 7.05 percent;
1.24    (3) On all over $86,910, 7.85 percent.
1.25    (d) For taxable years beginning after December 31, 2006, and before January 1,
1.262008, the 7.85 percent rate is increased to 7.95 percent, and for taxable years beginning
2.1after December 31, 2007, and before January 1, 2009, the 7.85 percent rate is increased to
2.28.05 percent.
2.3    (e) In lieu of a tax computed according to the rates set forth in this subdivision, the
2.4tax of any individual taxpayer whose taxable net income for the taxable year is less than
2.5an amount determined by the commissioner must be computed in accordance with tables
2.6prepared and issued by the commissioner of revenue based on income brackets of not
2.7more than $100. The amount of tax for each bracket shall be computed at the rates set
2.8forth in this subdivision, provided that the commissioner may disregard a fractional part of
2.9a dollar unless it amounts to 50 cents or more, in which case it may be increased to $1.
2.10    (e) (f) An individual who is not a Minnesota resident for the entire year must
2.11compute the individual's Minnesota income tax as provided in this subdivision. After the
2.12application of the nonrefundable credits provided in this chapter, the tax liability must
2.13then be multiplied by a fraction in which:
2.14    (1) the numerator is the individual's Minnesota source federal adjusted gross
2.15income as defined in section 62 of the Internal Revenue Code and increased by the
2.16additions required under section 290.01, subdivision 19a, clauses (1), (5), (6), (7), and (8),
2.17and (9), and reduced by the Minnesota assignable portion of the subtraction for United
2.18States government interest under section 290.01, subdivision 19b, clause (1), and the
2.19subtractions under section 290.01, subdivision 19b, clauses (9), (10), (14), and (15),
2.20and (16), after applying the allocation and assignability provisions of section 290.081,
2.21clause (a), or 290.17; and
2.22    (2) the denominator is the individual's federal adjusted gross income as defined in
2.23section 62 of the Internal Revenue Code of 1986, increased by the amounts specified in
2.24section 290.01, subdivision 19a, clauses (1), (5), (6), (7), and (8), and (9), and reduced
2.25by the amounts specified in section 290.01, subdivision 19b, clauses (1), (9), (10), (14),
2.26and (15), and (16).
2.27EFFECTIVE DATE.This section is effective for taxable years beginning after
2.28December 31, 2006."