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HF2437 (Legislative Session 94 (2025-2026))

Individual income taxes, corporate franchise taxes, property taxes, local government aids, sales and use taxes, and other taxes and tax-related provisions modified; certificate of rents paid provisions modified; cannabis tax provisions modified; and money appropriated.

Related bill: SF2374

AI Generated Summary

Purpose of the Bill

The purpose of this bill is to update Minnesota's tax legislation by modifying various taxes including individual income, corporate franchise, property taxes, and sales taxes. It aims to make several changes and repeals in existing tax provisions to streamline processes and adjust appropriations.

Main Provisions

  • Tax Modifications: Changes are made to individual income taxes, corporate franchise taxes, property taxes, and sales and use taxes.
  • Education and Research Credits: The bill repeals the assignability of the education credit and makes the research credit partially refundable.
  • Railroad and Airline Provisions: Modifications to the transfer provisions for the short line railroad credit and the airline flight property tax.
  • Property Tax Adjustments: Changes in provisions related to attachments, appurtenances, and leased tax-exempt property.
  • Sales Tax Adjustments: Reduction in the sales and use tax rate, while expanding the tax base to certain professional services.
  • Reported Changes: Changes to how certificates of rent are paid and altered calculations under the Sustainable Forest Incentive Act.
  • Repeals Cannabis Revenue Sharing: Repeals the local government cannabis aid and partial cannabis tax revenue dedication.
  • Other Provisions: Adjustments to tax filing modernization and associated cancellations, and sets requirements for new reporting.

Significant Changes to Existing Law

  • Tax Rate Changes: The bill proposes a lowering of the sales and use tax rate and expanding the taxable base to include certain professional services.
  • Repeals: It repeals provisions related to assignability of certain tax credits and financial aids, including those for cannabis.
  • Clarifications and Appropriations: It includes the creation of reports and appropriates money to implement its provisions.

Relevant Terms

  • Individual Income Tax
  • Corporate Franchise Tax
  • Property Tax
  • Sales and Use Tax
  • Education Credit
  • Research Credit
  • Railroad Credit
  • Airline Property Tax
  • Aquatic Invasive Species Prevention Aid
  • Sustainable Forest Incentive Act
  • Cannabis Tax Revenue

Bill text versions

Past committee meetings

  • Taxes on: April 02, 2025 10:15

Actions

DateChamberWhereTypeNameCommittee Name
March 16, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Inclusion of sustainable aviation fuel definitions and tax-related criteria."
      ],
      "removed": [],
      "summary": "Definitions and modifications related to aviation fuel in section 41A.30 are amended, introducing sustainable aviation fuel criteria.",
      "modified": [
        "Clarified the definition of qualifying taxpayer in context of aviation fuel production."
      ]
    },
    "citation": "41A.30"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This section refers to definitions related to types of aviation fuels amended within the statute.",
      "modified": [
        "Updated meanings of aviation gasoline and jet fuel for tax computation purposes."
      ]
    },
    "citation": "296A.01"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Refers to the existing definition of taxpayer as relevant to the aviation fuel incentives.",
      "modified": [
        "Provides clarity on taxpayer qualification in context of new sustainable aviation fuel definition."
      ]
    },
    "citation": "290.01"
  }
]

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