Purpose of the Bill

The bill aims to impose a tax on certain financial growth of assets held by colleges and universities in Minnesota. The overall objective is to support funding for higher education through this newly introduced taxation mechanism.

Main Provisions

• Creation of Higher Education Assets Growth Account: This bill establishes a new account within the special revenue fund, named the Higher Education Assets Growth Account. This account will collect taxes from the financial growth of certain assets held by higher education institutions.
• Use of Funds: Funds collected in this account are designated for the state grant program. This implies that collected taxes will be used to support initiatives that provide financial aid to students attending higher education institutions in Minnesota.
• Earnings and Continuity: Any earnings generated from the account's assets, such as interest or dividends, will be reinvested into the account. Importantly, the money in the account will not be redirected to the general fund at the end of the fiscal year but will remain available for use in subsequent years.

Significant Changes to Existing Law

• This bill adds a new subdivision to Minnesota Statutes 2024, section 136A.121, introducing the higher education assets growth account.
• It proposes coding within the Minnesota Statutes, chapter 290, to include these new procedures related to the taxation of asset growth.

Relevant Terms

• Taxation
• College and University Assets
• Higher Education Funding
• State Grant Program
• Special Revenue Fund