Minnesota Stable Owners Association

Senate Bills Introduced to Repeal From 1099 Reporting
Two bills have been introduced in the Senate to repeal IRS Form 1099 reporting requirements that were passed as part of health care reform legislation.

S. 72 was introduced by Sen. Max Baucus (D-MT) and has 22 cosponsors, including Senators Klobuchar and Franken. It is a companion to H.R. 4, the Small Business Paperwork Mandate Elimination Act of 2011, introduced by Rep. Dan Lungren (R-CA)

S. 18, the Small Business Paperwork Mandate Elimination Act, has been introduced by Sen. Mike Johanns (R- NE) and has 60 cosponsors, including Senator Amy Klobuchar.

Under current law, IRS Form 1099-Misc must be filed when a person engaged in a trade or business pays $600 or more to a non-employee for services performed during the calendar year. Rental payments are included in the reporting requirement but payments made to corporations are generally excluded. The business making the payment must provide a taxpayer identification number for each payee. A copy of the 1099 form must be furnished to both the person providing the service and to the IRS.

Beginning in 2012, farms, ranches and other businesses will be required to complete an IRS Form 1099 for all payments, including goods and services, aggregating $600 or more in a calendar year to a single non-employee payee. Payments made to corporations will no longer be excluded from the reporting requirement.

Vendors will have to furnish and purchasing businesses will have to collect Taxpayer Identification Numbers (TIN) or social security numbers. If a vendor fails to furnish a TIN, the purchasing business will be required to withhold 28 percent of the purchase price.


SF 2685 & HF 3107:  Fixing Horse Boarding Property Tax Classification

 We now have identical, or companion bills introduced in both the Senate and the House of Representatives.  Senate File 2685 and House File 3107 would synthesize the statute classifying horse boarding property with Department of Revenue's Final Report and the Sommerdorf tax court decision.

  It would be good to have more legislators agree to co-author the bills and babysit them as they progress through the legislative process.  We want to be sure that nobody changes or adds to them, though.  They must stay the way they are, and they must be identical in order to be signed into law.

  Please contact your State Senator and Representative by following the Quick Link to "Find and Contact Your Legislators."  You may call, send an email, or write a letter.  Be sure to reference SF 2685 with your Senator and HF 3107 with your State Representative.  The most effective communication is sincere and individual.  Tell a story with a sentence explaining your interest in the bills.  Whether you are a stable owner, a horse boarder, or the parent of a horse-crazy child, make it clear that this is important legislation for horse boarding property that affects you personally.


Assessment and Classification Practices Report

Property Used for Horse Breeding and Horse Boarding Activities

Summary Survey Results Properties Used for Horse Activities


Horse stable owners adopt herd mentality.

Read the complete article from St. Croix Valley Press.


Judge's decision pushed back to February on horse tax case.

Horse boarders get one-year reprieve.

Cities throw weight behind horse stables.

Horse stables get support from Hugo, Grant and May.

Horse stables anticipate property tax hike.


More information coming soon!