Bill > SF3194

This bill establishes a new excise tax on the asset growth of certain large colleges and universities in Minnesota, creating a dedicated account for the collected revenues. Specifically, the bill applies to educational institutions with over $100 million in total assets, at least 500 tuition-paying students, and more than 50% of those students located in Minnesota. The tax is calculated based on "per-student assets" and uses a graduated rate structure: 15% for per-student assets between $75,000 and $150,000, 20% for assets between $150,000 and $250,000, and 25% for assets over $250,000. The tax is imposed on the positive difference between an institution's asset values from one year to the next. Revenues collected will be deposited into a newly created "higher education assets growth account" within the state's special revenue fund, which will be used to support the state grant program. The bill defines key terms like "assets" and "educational institution" by referencing federal tax code definitions, and ensures that the tax's administration will follow existing state tax collection procedures. The tax will become effective for taxable years beginning after December 31, 2025, giving institutions time to prepare for the new financial requirement.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF3194&ssn=0&y=2025