Bill > HF5040

This bill establishes a new tax in Minnesota Statutes, chapter 295, that imposes a 100 percent tax on any amount obtained through fraud, which is defined as the intentional use of deceit or dishonest means to get state money from a state program or appropriation, excluding tax refunds, even if no conviction occurs. This tax applies to individuals or organizations convicted of fraud by a state or federal court, those the commissioner of revenue determines have obtained money through fraud, and those who receive compensation for participating in fraudulent activities that led to such convictions or determinations. The tax is levied regardless of any restitution or penalties already paid, and the commissioner of revenue is responsible for investigating potential fraud, establishing payment schedules, and enforcing the tax, with appeals handled under existing tax appeal provisions. All money collected from this tax will be deposited into a tax relief account within the special revenue fund, designated for income or property tax relief, and the law is effective retroactively for fraud determinations made after December 31, 2019.