summary
Introduced
02/16/2023
02/16/2023
In Committee
04/28/2023
04/28/2023
Crossed Over
Passed
Dead
05/20/2024
05/20/2024
Introduced Session
93rd Legislature 2023-2024
Bill Summary
A bill for an act relating to financing and operation of state and local government; modifying provisions governing individual income and corporate franchise taxes, federal conformity, property taxes, certain state aids, sales and use taxes, minerals taxes, tax increment financing, local sales and use taxes, local special taxes, provisions related to public finance, and various other taxes and tax-related provisions; modifying income tax credits; modifying existing and proposing new subtractions; modifying provisions related to the taxation of pass-through entities; providing for certain federal tax conformity; modifying provisions related to reporting of corporate income; providing a onetime refundable rebate credit; modifying property tax exemptions, classifications, and refunds; modifying local government aid calculations; establishing soil and water conservation district aid; providing public safety aid; providing for certain sales tax exemptions and providing new definitions; modifying taconite taxes and distributions; modifying provisions related to tax increment financing and allowing certain special local provisions; authorizing and modifying certain local taxes; providing for a process to refund the state stadium bonds; establishing tourism improvement areas; requiring reports; providing for certain policy and technical modifications; appropriating money; amending Minnesota Statutes 2022, sections 6.495, subdivision 3; 13.46, subdivision 2; 13.4967, by adding a subdivision; 16A.726; 38.27, subdivision 4; 41B.0391, subdivisions 1, 2, 4, 6; 103D.905, subdivision 3; 116J.401, subdivision 3; 116J.8737, subdivisions 5, 12; 116U.27, subdivisions 1, 4, 7; 123B.61; 206.95; 270B.14, subdivision 2; 270C.13, subdivision 1; 270C.19, subdivisions 1, 2; 270C.446, subdivision 2; 270C.52, subdivision 2; 272.02, subdivisions 24, 73, 98, by adding subdivisions; 272.025, subdivision 1; 273.11, subdivisions 12, 23; 273.111, by adding a subdivision; 273.124, subdivisions 6, 13, 13a, 13c, 13d, 14; 273.1245, subdivision 1; 273.128, subdivisions 1, 2, by adding a subdivision; 273.13, subdivisions 22, 25, 34, 35; 273.1315, subdivision 2; 273.1341; 273.1392; 273.41; 278.01, subdivision 1; 279.03, subdivision 1a; 282.261, subdivision 2; 289A.02, subdivision 7, as amended; 289A.08, subdivisions 7, as amended, 7a, as amended; 289A.382, subdivision 2; 289A.50, by adding a subdivision; 290.01, subdivisions 7b, 19, 31, as amended; 290.0131, by adding a subdivision; 290.0132, subdivisions 4, 26, by adding subdivisions; 290.0134, by adding a subdivision; 290.06, subdivisions 2c, as amended, 22, 23, 39, by adding a subdivision; 290.067; 290.0671, subdivisions 1, 7; 290.0674; 290.0677, subdivision 1; 290.0681, subdivisions 3, 4; 290.0685, subdivision 1; 290.091, subdivision 2, as amended; 290.17, subdivision 4, by adding a subdivision; 290.92, subdivision 20; 290.9705, subdivision 1; 290A.03, subdivisions 6, 13, 15, as amended; 290A.04, subdivision 1 SF1811 REVISOR EAP S1811-1 1st Engrossment 2h; 290A.19; 290B.03, subdivision 1; 290B.04, subdivisions 3, 4; 290B.05, subdivision 1; 291.005, subdivision 1, as amended; 295.50, subdivision 4; 296A.083, subdivision 3; 297A.61, subdivision 29; 297A.67, by adding a subdivision; 297A.68, subdivision 4, by adding subdivisions; 297A.70, subdivisions 7, 19, 21; 297A.71, subdivisions 51, 52; 297A.99, subdivisions 1, 2, 3; 297A.994, subdivision 4; 297H.13, subdivision 2; 297I.20, subdivision 4, by adding subdivisions; 298.015; 298.018, subdivisions 1, 1a; 298.28, subdivisions 5, 7a, by adding a subdivision; 298.296, subdivision 4; 299C.76, subdivisions 1, 2; 366.095, subdivision 1; 373.01, subdivision 3; 383B.117, subdivision 2; 383E.21; 410.32; 412.301; 469.033, subdivision 6; 469.053, subdivisions 4, 6; 469.107, subdivision 1; 469.174, subdivisions 14, 27, by adding a subdivision; 469.175, subdivision 6; 469.176, subdivisions 3, 4; 469.1763, subdivisions 2, 3, 4, 6; 469.1771, subdivisions 2, 2a, 3; 473.39, by adding a subdivision; 473F.02, subdivisions 2, 8; 473J.13, subdivisions 2, 4; 474A.02, subdivisions 22b, 23a; 475.54, subdivision 1; 477A.011, subdivision 34, by adding subdivisions; 477A.0124, subdivisions 2, 3; 477A.013, subdivisions 8, 9; 477A.014, subdivision 1; 477A.015; 477A.03, subdivisions 2a, 2b; 477A.12, subdivision 1; 477A.16, subdivision 2; 477B.01, subdivisions 5, 10, 11, by adding subdivisions; 477B.02, subdivisions 2, 3, 5, 8, 9, 10, by adding a subdivision; 477B.03, subdivisions 2, 3, 4, 5, 7; 477B.04, subdivision 1, by adding a subdivision; 477C.02, subdivision 4; 477C.03, subdivisions 2, 5; 477C.04, by adding a subdivision; Laws 1971, chapter 773, section 1, subdivision 2, as amended; Laws 1993, chapter 375, article 9, section 46, as amended; Laws 1998, chapter 389, article 8, section 43, as amended; Laws 2003, chapter 127, article 10, section 31, subdivision 1, as amended; Laws 2006, chapter 259, article 11, section 3, as amended; Laws 2008, chapter 366, article 5, sections 26, as amended; 36, subdivisions 1, 3, as amended; article 7, sections 17; 20, as amended; article 17, section 6; Laws 2011, First Special Session chapter 7, article 4, section 14; Laws 2014, chapter 308, article 6, section 12, subdivision 2; Laws 2019, First Special Session chapter 6, article 6, sections 13, subdivisions 3, 4, by adding a subdivision; 18; 26; article 7, section 7; Laws 2021, First Special Session chapter 14, article 8, sections 5; 6, subdivisions 2, 3; 15, subdivisions 2, 3, 4, by adding a subdivision; 20, subdivision 4; article 9, section 10; Laws 2023, chapter 1, section 15; proposing coding for new law in Minnesota Statutes, chapters 204B; 290; 477A; proposing coding for new law as Minnesota Statutes, chapters 116X; 428B; repealing Minnesota Statutes 2022, sections 16A.965; 41B.0391, subdivision 7; 290.0132, subdivision 33; 290.0681, subdivision 10; 297E.021; 477A.011, subdivisions 30a, 38, 42, 45; 477A.013, subdivision 13; 477B.02, subdivision 4; 477B.03, subdivision 6.
AI Summary
This bill proposes several key changes to Minnesota's tax system, including:
This bill proposes several key changes to Minnesota's tax system, including:
1. Establishing a new markets tax credit modeled after the federal new markets tax credit program to encourage investment in low-income communities. The bill sets up application, certification, and reporting requirements for the credit.
2. Expanding the existing beginning farmer tax credit program, including increasing the credit amounts and expanding eligibility to include sales of agricultural land to family members.
3. Establishing a child tax credit of $620 per child or disabled adult child, subject to income phase-outs.
4. Creating a new subtraction for qualified public pension income up to $25,000 for married filers and $12,500 for other filers, subject to income phase-outs.
5. Increasing the political contribution refund limits to $75 for individuals and $150 for married couples filing jointly.
6. Expanding the film production credit and extending the sunset date to 2033.
7. Allowing a credit against the pass-through entity tax for taxes paid to another state.
8. Revising the child and dependent care credit, including increased credit percentages and expense limits, particularly for families with young children.
9. Modifying the calculation and distribution of local government aids, including creating a soil and water conservation district aid program and electric generation transition aid.
10. Providing a one-time tax rebate of up to $726 per eligible filer.
11. Establishing sales tax exemptions for certain items like firearm storage units, broadband infrastructure, and amenities included in event admissions.
12. Making changes to the taxation of mining activities, including transitioning from a net proceeds tax to a gross proceeds tax and establishing a minimum payment.
13. Modifying various tax increment financing laws, including special rules for certain districts.
14. Authorizing or modifying local sales taxes in several cities, including St. Paul, Rochester, Marshall, and Excelsior.
Overall, the bill makes a wide range of changes to Minnesota's individual income, corporate, property, sales, and other tax provisions, with a focus on economic development, low-income support, public infrastructure, and local government finance.
Committee Categories
Budget and Finance
Sponsors (3)
Last Action
Rule 45-amend, subst. General Orders HF1938, SF indefinitely postponed (on 05/01/2023)
Official Document
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