Bill > SF5193

This bill establishes a new tax in Minnesota Statutes, chapter 295, called the "Tax on Amounts Obtained Through Fraud," which imposes a 100 percent tax on any amount obtained through fraud. Fraud is defined as the intentional use of deceit or dishonest means to obtain state money from a state program or appropriation, excluding refunds for overpayment of taxes, and this determination can be made by the commissioner of revenue even without a criminal conviction. The tax applies to individuals or organizations convicted of fraud by a state or federal court, those the commissioner determines have obtained money through fraud, and anyone who receives compensation from such individuals or organizations for participating in the fraudulent activity. This tax is in addition to any restitution or penalties already imposed, and the commissioner of revenue is tasked with investigating potential fraud, setting payment schedules, and enforcing the tax, with appeals handled under section 270C.35. All money collected from this tax will be deposited into a tax relief account within the special revenue fund, to be used solely for income or property tax relief, and the law is effective retroactively for fraud determinations made after December 31, 2019.