Purpose of the Bill

This Minnesota legislative bill aims to modify various taxation elements, including individual income and corporate franchise taxes, property taxes, and several other tax-related provisions. It seeks to adjust existing laws to provide greater clarity and efficiency in tax administration and to offer new benefits and incentives for individuals, farmers, corporations, and local governments.

Main Provisions

• Income and Corporate Franchise Taxes: The bill modifies individual income and corporate franchise tax provisions, including changes to tax credits such as the political contribution refund and child tax credit.

• Property and Local Government Taxes: It includes modifications to property classifications, provides property tax exemptions, and introduces an advance credit of homestead credit refunds for seniors. It also addresses penalties for local government aids and special taxes like those on gambling and amusement devices.

• Sales and Use Taxes: Introduces a sales and use tax exemption for certain construction materials, and modifies local tax increment financing authority.

• Electronic Filing and Debt Relief: Establishes electronic direct free filing for individual income taxes and allows for the subtraction of discharged coerced debt from income definitions.

• Land Bank and Lodging Taxes: Provides legislative guidelines for land bank organizations and reduces tax rates on local lodging.

• Repeal of Controlled Substances Tax: The bill repeals the tax on illegal cannabis and controlled substances.

Significant Changes to Existing Law

• Worker Classification and Farmer Credit: Adjustments are made to nonconformity with specific worker classification rules and changes in the beginning farmer credit provisions.

• Disclosure of Corporate Information: Provides for disclosure of specific corporate franchise tax information for better transparency.

• Amusement and Controlled Substances Taxes: Amends the amusement device gross receipts tax and repeals taxes on illegal substances.

Relevant Terms

political contribution refund, beginning farmer credit, corporate franchise tax, electronic filing, coerced debt, child tax credit, homestead credit, property tax exemptions, local government aids, tax increment financing, sales and use tax exemption, controlled substances tax repeal, land bank organizations, local lodging taxes.