BillTrack50 logo
Free Signup Login
Bill

Bill > SF3301

MN SF3301

MN SF3301
Individual income tax and corporate tax phasing out provision

summary

Introduced
04/07/2025
In Committee
04/07/2025
Crossed Over
Passed
Dead

Introduced Session

94th Legislature 2025-2026

Bill Summary

A bill for an act relating to taxation; income; phasing out the individual income tax and corporate franchise tax; repealing Minnesota Statutes 2024, sections 289A.08, subdivisions 1, 2, 3, 4, 5, 6, 7, 7a, 8, 10, 11, 13, 14, 15, 16, 17, 18; 289A.09; 289A.25, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14; 289A.26; 289A.30, subdivision 1; 289A.31, subdivisions 1, 2, 5, 8; 289A.35; 289A.37, subdivisions 2, 6; 289A.381; 289A.382; 289A.50, subdivisions 3, 3a; 289A.56, subdivision 2; 289A.60, subdivision 22a; 290.01, subdivisions 1, 1a, 2, 3, 3a, 3b, 3c, 4, 4a, 4c, 5, 5a, 5b, 5c, 6, 7, 7a, 7b, 8, 8a, 9, 10, 11, 12, 13, 14, 14a, 15, 16, 17, 18, 19, 20, 21a, 22, 29, 29a, 30, 31, 33; 290.0121; 290.0122; 290.0123; 290.0131, subdivisions 1, 2, 3, 4, 5, 6, 8, 9, 10, 14, 15, 16, 17, 19, 20; 290.0132, subdivisions 1, 2, 3, 4, 5, 6, 7, 9, 11, 12, 13, 14, 15, 16, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 29, 30, 31, 32, 34, 35; 290.0133, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 15; 290.0134, subdivisions 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 16, 18, 19, 20; 290.0135; 290.0136; 290.0137; 290.014; 290.015; 290.02; 290.03; 290.032, subdivisions 1, 2, 3; 290.033; 290.04; 290.05, subdivisions 1, 2, 3, 4, 8; 290.06, subdivisions 1, 2c, 2d, 2g, 2h, 22, 23, 23a, 27, 28, 29, 33, 35, 37, 38, 39, 40; 290.0661; 290.067, subdivisions 1, 2b, 3, 4; 290.0671, subdivisions 1, 1a, 2, 4, 6, 7; 290.0672; 290.0674, subdivisions 1, 1a, 2, 4, 5, 6; 290.0675, subdivisions 1, 2, 3, 4; 290.0677; 290.0679; 290.068, subdivisions 1, 2, 3, 4, 5; 290.0681; 290.0682; 290.0683; 290.0684; 290.0685; 290.0686; 290.0688; 290.0692; 290.0693; 290.0694; 290.0695; 290.07, subdivisions 1, 2, 4, 7; 290.0802; 290.081; 290.091; 290.0921, subdivisions 1, 2, 3, 3a, 4, 6, 8; 290.0922; 290.093; 290.095, subdivisions 1, 2, 3, 4, 5, 9, 11; 290.10, subdivision 1; 290.17, subdivisions 1, 2, 3, 4, 5, 6; 290.172; 290.191, subdivisions 1, 2, 3, 5, 6, 8, 9, 10, 11, 12; 290.20; 290.21, subdivisions 1, 4, 9, 10; 290.22; 290.26, subdivision 6; 290.281, subdivision 1; 290.30; 290.31, subdivisions 1, 27; 290.311, subdivision 1; 290.32; 290.34, subdivisions 1, 2, 5; 290.36; 290.371, subdivisions 1, 2, 3, 4; 290.431; 290.432; 290.433; 290.48, subdivision 10; 290.491; 290.62; 290.92, subdivisions 1, 2a, 3, 4, 4a, 4b, 4c, 5, 5a, 9, 10, 12, 16, 17, 19, 20, 21, 24, 25, 26, 27, 28, 29, 30; 290.9201, subdivisions 1, 2, 6, 7, 8, 11; 290.923, subdivisions 1, 2, 3, 4, 5, 6, 8, 9, 10, 11; 290.9705, subdivisions 1, 3, 4; 290.9725; 290.9726, subdivisions 1, 2, 4; 290.9727; 290.9728; 290.9729; 290.9741; 290.9742; 290.993. 1

AI Summary

This bill proposes to phase out individual income tax and corporate franchise tax in Minnesota over a period from 2026 to 2029. Here's a summary of the key provisions: This bill would gradually reduce the state's income and corporate franchise tax liability over a five-year period. Specifically, for taxable years beginning: - After December 31, 2025: Taxpayers' liability would be 80% of the amount normally calculated - After December 31, 2026: Taxpayers' liability would be 60% of the amount normally calculated - After December 31, 2027: Taxpayers' liability would be 40% of the amount normally calculated - After December 31, 2028: Taxpayers' liability would be 20% of the amount normally calculated The bill also includes provisions for: - A revisor instruction to identify any additional statutory changes needed to fully repeal the taxes - A comprehensive repealer section that would eliminate multiple sections of Minnesota tax law related to income and corporate taxation - An effective date of taxable years beginning after December 31, 2025, with the full repeal taking effect for taxable years beginning after December 31, 2029 The bill represents a significant transformation of Minnesota's tax system, gradually reducing income and corporate tax rates to zero over a five-year period. This would have substantial implications for state revenue and taxpayers' financial obligations.

Committee Categories

Budget and Finance

Sponsors (5)

Last Action

Referred to Taxes (on 04/07/2025)
(1 Companion Bills)

bill text

bill summary

Loading...

bill summary

Loading...
Loading...