summary
Introduced
03/17/2025
03/17/2025
In Committee
05/09/2025
05/09/2025
Crossed Over
Passed
Dead
Introduced Session
94th Legislature 2025-2026
Bill Summary
A bill for an act relating to taxation; modifying individual income taxes, corporate franchise taxes, sales and use taxes, excise taxes, local sales and use taxes, property taxes, local government aids, tax increment financing, and other miscellaneous taxes and tax-related provisions; modifying the political contribution refund; modifying subtractions; providing for direct free filing; modifying credits, assignments, and transfers; modifying and providing for sales and use tax exemptions; modifying excise taxes for sales of premium cigars outside of Minnesota; providing for license endorsements for premium cigars; modifying accelerated payments for liquor excise and tobacco excise taxes; modifying and providing for property tax exemptions; modifying property tax classifications; providing for land bank organizations; providing local government aid penalty forgiveness; modifying aids; providing for special tax increment financing; modifying tax increment financing provisions; modifying provisions related to public finance; modifying provisions related to the Tax Expenditure Review Commission; increasing debt issue limits; modifying penalties relating to property tax refunds and certificates of rent paid; modifying payments for the Sustainable Forest Incentive Act; modifying gross revenues and gross receipts taxes; modifying solid waste management tax dedications and definitions; providing for land-value taxation districts; repealing the tax on illegal cannabis and controlled substances; creating a legislative task force on local sales and use taxes; providing transfers of money; appropriating money; amending Minnesota Statutes 2024, sections 3.192; 3.8855, subdivisions 2, 3, 4, 5, 7, 8; 10A.02, subdivision 11b; 10A.322, subdivision 4; 37.31, subdivision 1; 41B.0391, subdivision 4; 116U.27, subdivision 2; 270C.11, subdivision 4; 270C.15; 270C.445, subdivisions 3, 6; 272.01, subdivision 2; 272.02, subdivisions 7, 19, by adding subdivisions; 273.13, subdivisions 22, 25, 34; 273.38; 273.41; 289A.12, subdivision 18; 289A.20, subdivision 4; 289A.60, subdivision 12; 290.01, subdivision 19; 290.0132, subdivisions 26, 34, by adding subdivisions; 290.0134, subdivision 20; 290.06, subdivision 23; 290.0661, by adding a subdivision; 290.0693, subdivisions 1, 4, 6, 8; 290.0695, subdivisions 1, 2, 3; 290A.03, subdivision 3; 290A.19; 290B.03, subdivision 1; 290B.04, subdivisions 3, 4; 290B.05, subdivision 1; 290C.07; 295.53, subdivision 4a; 295.54, subdivision 2; 295.81, subdivision 10; 297A.68, subdivisions 3, 40; 297A.71, subdivision 54; 297A.75, subdivisions 1, 2, 3; 297A.77, subdivision 3; 297A.94; 297A.99, subdivisions 3a, 10; 297A.995, subdivisions 2, 10; 297E.06, subdivision 4; 297F.01, by adding a subdivision; 297F.03, by adding a subdivision; 297F.04; 297F.06, by adding a subdivision; 297F.09, subdivisions 2, 10; 297G.09, subdivisions 9, 10; 297H.01, subdivision 8; 297H.13, subdivision 2; 297I.20, subdivision 4; 373.40, 1 HF2437 SECOND ENGROSSMENT REVISOR EAP H2437-2 subdivision 2; 446A.086, subdivisions 1, 2; 462A.39, subdivision 5; 462A.40, subdivisions 2, 3; 462C.04, subdivision 2; 469.104; 469.154, subdivision 4; 469.174, subdivision 10; 469.175, subdivision 3; 469.176, subdivision 4n; 469.1761, subdivisions 1, 3; 469.1763, subdivisions 2, 3, 4, by adding a subdivision; 469.177, subdivision 1; 469.1812, by adding a subdivision; 469.1813, subdivisions 1, 6, by adding a subdivision; 474A.091, subdivisions 2, 2a; 475.521, subdivision 2; 609.902, subdivision 4; 641.23; Laws 2010, chapter 389, article 7, section 22, as amended; Laws 2013, chapter 143, article 9, section 21; Laws 2014, chapter 308, article 6, section 9, as amended; Laws 2017, First Special Session chapter 1, article 6, section 22; Laws 2023, chapter 1, sections 22; 28; Laws 2023, chapter 64, article 15, section 24; proposing coding for new law in Minnesota Statutes, chapters 289A; 297A; 428A; repealing Minnesota Statutes 2024, sections 13.4967, subdivisions 2a, 5; 290.0679; 297D.01; 297D.02; 297D.03; 297D.04; 297D.05; 297D.06; 297D.07; 297D.08; 297D.085; 297D.09, subdivisions 1, 1a, 2; 297D.10; 297D.11; 297D.12; 297D.13; 477A.32.
AI Summary
This bill establishes comprehensive tax policy and finance provisions affecting multiple areas of Minnesota taxation. Here's a detailed summary:
This bill introduces a wide-ranging set of tax modifications covering individual income taxes, corporate franchise taxes, sales and use taxes, property taxes, tax increment financing, and various other tax-related provisions. Key highlights include establishing a direct free filing system for individual income tax returns, modifying various tax credits and exemptions, adjusting property tax classifications and assessments, creating new tax increment financing rules, and implementing several specific local tax provisions.
Some significant provisions include:
1. Creating a state-run direct free filing system for individual income tax returns, available starting in 2026, which will allow taxpayers to file electronically at no cost and claim specific tax credits.
2. Modifying the political contribution refund system, including changes to how receipts are issued and verified.
3. Introducing a "baby bonus" credit of $100 for each qualifying child born during the tax year, effective in 2028.
4. Expanding tax subtraction provisions for various scenarios, such as student loan educational assistance from critical access dental clinics and certain stipend payments.
5. Adjusting property tax classifications, including changes to homestead and commercial property assessments.
6. Creating special tax increment financing rules for several Minnesota cities, including Brooklyn Center, Brooklyn Park, and St. Cloud.
7. Establishing a task force to examine local sales taxes and their implementation.
8. Implementing new provisions for land-value taxation districts in Minneapolis and St. Paul.
The bill also includes numerous technical corrections, sunset provisions for certain tax programs, and appropriations for various state and local government initiatives. Its comprehensive approach aims to modernize Minnesota's tax system, provide targeted tax relief, and create more flexible financing mechanisms for local governments.
Committee Categories
Budget and Finance
Sponsors (2)
Last Action
Motion prevailed (on 05/13/2025)
Official Document
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