June 4, 1991
TO: MONEY MARKET MEMBERS - ONE PER COMPLEX NO. 15-91
CLOSED-END FUND MEMBERS NO. 23-91
TAX MEMBERS NO. 19-91
RE: MINNESOTA REPORTING REQUIREMENT FOR EXEMPT INTEREST
DIVIDEND
__________________________________________________________
In the final days of the Minnesota legislative session, an
omnibus tax bill was introduced and passed by the legislature.
Section 7 of Article 6 of the bill (attached), generally requires
all regulated investment companies which register in Minnesota to
report to Minnesota shareholders the total amount of exempt-
interest dividends paid each year. This report must be sent to
the Minnesota resident no later than 30 days after the close the
tax year.
The bill also requires that the return include a clear
statement, in the form prescribed by the Minnesota Commissioner
of Revenue, that the exempt-interest dividends must be included
in the computation of Minnesota taxable income. The Institute
will contact the Department of Revenue to clarify these
requirements.
This reporting requirement is effective for tax years
beginning after December 31, 1990.
We will keep you informed of further developments.
David J. Mangefrida, Jr.
Assistant Counsel - Tax
Attachment