Charitable Deduction for Minnesota AMT Taxpayers
9/13/02
Charitable Deduction for Minnesota AMT Taxpayers Struck Down by State Supreme Court; Can We Fix it in the Special Session Next Week?
Recently, the Minnesota State Supreme Court struck down an established provision in state law that allowed Minnesota taxpayers who are subject to the alternative minimum tax (AMT) to take a deduction for charitable contributions to Minnesota nonprofits. Although this decision affects a relatively small group of wealthy Minnesotans, it includes some of our most generous philanthropists. The court ruled that limiting the deduction to in-state gifts discriminates against interstate commerce and said “no deduction is available for any charitable contributions” made by Minnesotans subject to the AMT.
Some have estimated that the court’s ruling could cost the nonprofit community as much as $20 million in charitable giving this year. The state legislature can take action to fix this problem, but it needs to do so quickly.
The Governor has agreed to call a special session at Noon on Thursday, September 19 to address flood relief. He has not yet agreed to include the alternative minimum tax (AMT) charitable deduction on the agenda.
PLEASE CALL THE GOVERNOR’S OFFICE (651-296-3391) and ask him to support resolving this issue during the special session. “Please restore the AMT charitable deduction during the special session.” The Supreme Court ruling has stripped an important and established incentive for charitable giving from Minnesota law. The problem needs to be resolved immediately to avoid a loss of charitable contributions to nonprofit organizations at a time we need them most.