Income tax; definition of resident trust modified.

HF 940 modifies Minnesota's definition of a "resident trust" for income tax purposes. It affects non-grantor trusts (trusts where the grantor isn't taxed on trust income) that may be subject to Minnesota taxation. For trusts established after December 31, 1995, the bill requires two of three location-based criteria to qualify as "resident": (1) most investment decisions made in Minnesota, (2) most distribution decisions made in Minnesota, or (3) trust records kept in Minnesota. This clarifies which trusts must pay Minnesota income tax based on where trust administration occurs.