Revenue Notice #02-03: Corporate Franchise Tax - Revocation of Revenue Notice 96-19

The Department of Revenue's interpretation of Minnesota Statutes, section 290.35, regarding mutual life insurance companies' credit against corporate franchise tax liability for "any taxes on premiums paid by it that are attributable to the period for which tax imposed under this chapter is imposed," is no longer necessary.

Minnesota Statutes, section 290.35, imposing the corporate franchise tax on insurance companies was repealed effective for tax years beginning after December 31, 2000 and insurance companies are specifically exempted from taxation under Minnesota Statutes, chapter 290. (See, Laws of Minnesota 2001, 1st Special Session, chapter 5, article 9, sections 30(b) and 9, respectively.) Because of these law changes, the revenue notice interpreting the statute for the purposes of computing the gross premiums tax credit, with recomputed differential earnings amounts for attribution of income to a tax year, has no effect.

Based on this law change, Revenue Notice # 96-19, entitled "Corporate Franchise Tax - Mutual Life Insurance Companies," is hereby revoked for tax years beginning after December 31, 2000.

Dated: 31 December, 2001

Jennifer Engh

Assistant Commissioner for Tax Policy