Purpose of the Bill

The purpose of this bill is to appropriate funds for an initiative aimed at enhancing corporate tax compliance within Minnesota. The goal is to ensure that corporations accurately report their taxable income and pay the taxes they owe.

Main Provisions

• Funding: The bill allocates $10,000,000 from the general fund for fiscal year 2026 to support this tax compliance initiative. The allocated funds will be available until July 1, 2029.
• Tax Compliance Initiative: This program aims to improve tax compliance and enforcement specifically regarding the corporate franchise tax. It focuses on identifying and collecting taxes from corporations that fail to report accurately, claim incorrect tax credits, or do not pay their full tax obligations.
• Targeted Corporations: The initiative particularly addresses corporations with $25,000,000 or more in Minnesota sales or gross receipts in a taxable year, prioritizing compliance and enforcement among larger entities.

Significant Changes to Existing Law

The bill introduces additional funding specifically designated to support the identification and enforcement of corporate tax compliance, indicating a more focused approach on large businesses’ tax practices. This funding is supplementary, meaning it adds to existing resources rather than replacing them.

Relevant Terms

• Corporate tax compliance
• Tax enforcement
• Corporate franchise tax
• Taxable income
• General fund
• Appropriation