Corporate franchise tax; contingent rate reductions provided.

HF 1131 modifies Minnesota's corporate franchise tax rate, which currently stands at 9.8% of taxable income, by creating a mechanism for automatic rate reductions under specific conditions. The tax rate can be reduced by 0.312% each time two conditions are met: the state's budget surplus equals or exceeds a defined revenue reduction amount, and over 70% of the tax burden is allocated to consumers per the tax incidence report. The total reduction is capped at 8.24%, meaning the rate cannot fall below 1.56% (9.8% minus 8.24%). The commissioner must publish any rate adjustment by December 31 of the relevant year, with the new rate taking effect for taxable years beginning after December 31 of that calendar year. This bill directly affects corporations subject to Minnesota's franchise tax.