AI Generated Summary
Purpose of the Bill
The purpose of this bill is to modify various tax-related provisions in Minnesota, including changes to individual income taxes, corporate franchise taxes, sales and use taxes, and other tax policies. It aims to update existing tax laws, provide new or modified income tax credits, and refine tax collection and enforcement mechanisms.
Main Provisions
Income and Corporate Tax Modifications:
- Adjustments are made to individual income taxes and corporate franchise taxes, impacting how credits and subtractions are calculated.
- A taxpayer can receive a credit of up to 25% for eligible production costs incurred during a taxable year, provided a credit certificate is obtained.
Sales and Use Taxes:
- The bill amends exemptions to sales and use taxes to potentially expand or refine what qualifies for an exemption.
- Modifications to the collection and deposit procedures for sales and use taxes are included.
Tax Credits and Subtractions:
- Introduction of changes in income tax credits, aiming to potentially increase qualifications for receiving credits.
- Amendments in subtraction provisions from taxable income, which could impact the taxable amounts for individuals or corporations.
Partnership Provisions:
- Changes in laws governing partnerships for tax purposes, affecting how partnerships report and are assessed.
Property Tax Classification:
- Adjustments to classifications which can affect property tax liabilities for certain property owners.
Tax Enforcement and Audits:
- The bill seeks to adjust procedures related to tax return filings and audits to improve enforcement efficiency.
Significant Changes to Existing Law
- Eligibility for Credits: The bill specifies a condition for obtaining tax credits, requiring a credit certificate to be issued as a prerequisite.
- Technical Amendments: Various technical changes are made to improve clarity and functionality of the tax code, potentially affecting how businesses and individuals comply with tax regulations.
Relevant Terms
Minnesota taxation, individual income tax, corporate franchise tax, sales and use tax, tax credits, tax exemptions, property tax, tax audit, tax enforcement, partnerships, tax policy changes.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 26, 2025 | Senate | Floor | Action | Introduction and first reading | |
| March 26, 2025 | Senate | Floor | Action | Referred to | Taxes |
Citations
[
{
"analysis": {
"added": [
"Provision for 25 percent tax credit on production costs."
],
"removed": [],
"summary": "This bill modifies the credit eligibility for production costs under section 116U.27.",
"modified": [
"Clarification on the period for credit eligibility and conditions for claiming the credit."
]
},
"citation": "116U.27",
"subdivision": "subdivision 2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This section addresses modifications related to enforcement under section 270C.445.",
"modified": [
"Updated procedures for enforcement and audit processes."
]
},
"citation": "270C.445",
"subdivision": "subdivisions 3 6"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Changes to the property tax classification under section 273.13.",
"modified": [
"Amending property classifications for tax purposes."
]
},
"citation": "273.13",
"subdivision": "subdivision 22"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Changes related to tax return filings under section 289A.08.",
"modified": [
"Adjustments to filing requirements and deadlines."
]
},
"citation": "289A.08",
"subdivision": "subdivision 7a"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Updates on tax audit provisions under section 289A.12.",
"modified": [
"Enhanced audit procedures and guidelines."
]
},
"citation": "289A.12",
"subdivision": "subdivision 18"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Modifications to return and refund claims under section 289A.31.",
"modified": [
"Clarified process for claiming tax refunds and credits."
]
},
"citation": "289A.31",
"subdivision": "subdivision 1"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill modifies definitions related to income tax under section 290.01.",
"modified": [
"Adjusted definitions to align with tax policy changes."
]
},
"citation": "290.01",
"subdivision": "subdivision 19"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Updates to income tax deductions under section 290.0132.",
"modified": [
"Revisions to eligible deductions and calculation methods."
]
},
"citation": "290.0132",
"subdivision": "subdivisions 26 34"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Revisions to subtraction rules under section 290.0134.",
"modified": [
"Altered subtraction provisions for specific income types."
]
},
"citation": "290.0134",
"subdivision": "subdivision 20"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amendments to tax credit provisions under section 290.0693.",
"modified": [
"Streamlining criteria for tax credit eligibility and application."
]
},
"citation": "290.0693",
"subdivision": "subdivisions 1 6 8"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Adjustments to tax exemption processes under section 290.0695.",
"modified": [
"Refinement of exemption qualifications and application processes."
]
},
"citation": "290.0695",
"subdivision": "subdivision 2"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Modifications to sales tax exemptions in section 297A.71.",
"modified": [
"Expansion and restriction of certain sales tax exemptions."
]
},
"citation": "297A.71",
"subdivision": "subdivision 54"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Changes to sales tax refund procedures under section 297A.75.",
"modified": [
"Revision of refund eligibility and application guidelines."
]
},
"citation": "297A.75",
"subdivision": "subdivisions 1 2 3"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This section covers modifications to sales tax collection mandates in 297A.94.",
"modified": [
"Adjustments to collection protocols and distribution of sales tax proceeds."
]
},
"citation": "297A.94",
"subdivision": ""
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Updates to joint powers agreements concerning sales tax in section 297A.99.",
"modified": [
"Clarification of agreements and responsibilities related to tax collection."
]
},
"citation": "297A.99",
"subdivision": "subdivision 10"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Amendments to local sales tax authority rules under section 297A.995.",
"modified": [
"Refinement of local tax jurisdiction and imposition powers."
]
},
"citation": "297A.995",
"subdivision": "subdivisions 2 10"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "This section includes updates to gambling tax provisions found in section 297E.06.",
"modified": [
"Reevaluation of taxation on gambling entities and reporting requirements."
]
},
"citation": "297E.06",
"subdivision": "subdivision 4"
},
{
"analysis": {
"added": [],
"removed": [],
"summary": "Changes concerning insurance tax regulations in section 297I.20.",
"modified": [
"Modification of brackets and tax liabilities in insurance sectors."
]
},
"citation": "297I.20",
"subdivision": "subdivision 4"
}
]