Bill > HF3069

This bill establishes a new excise tax on the asset growth of large educational institutions in Minnesota, targeting colleges and universities with total assets over $100 million, at least 500 tuition-paying students, and more than 50% of students located in Minnesota. The tax is structured progressively, with different tax rates based on per-student asset levels: 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 bill creates a new "higher education assets growth account" in the state's special revenue fund, where the tax revenues will be deposited and dedicated to the state grant program. The tax calculation considers assets used directly in the institution's exempt purpose and includes provisions for handling assets of related organizations. Institutions must report and remit the tax according to guidelines set by the commissioner, with standard audit, assessment, and administrative procedures applying. The tax will take effect for taxable years beginning after December 31, 2025, and is designed to generate additional revenue from the growth of assets at large educational institutions while potentially encouraging more spending on educational purposes.

Education

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF3069&ssn=0&y=2025