Purpose of the Bill

The bill aims to enhance corporate tax compliance in Minnesota by providing funding for a specific initiative. The goal is to ensure that corporations accurately report their taxable income and pay the correct amount of taxes owed to the state.

Main Provisions

• Appropriation Fund: The bill allocates $10,000,000 from Minnesota's general fund for fiscal year 2026. This money is designated for the development and implementation of an expanded corporate tax compliance initiative. The funding is set to be available until July 1, 2029.

• Compliance Initiative: The initiative will focus on increasing the efficiency and effectiveness of tax compliance and enforcement activities related to the corporate franchise tax. This includes identifying corporations that fail to accurately report taxable income or do not pay the taxes they owe.

• Priority Enforcement: The initiative is mandated to prioritize compliance and enforcement efforts on corporations that report $25,000,000 or more in sales or gross receipts in Minnesota during a taxable year.

Significant Changes

• Enhanced Tax Enforcement: This bill proposes a significant strengthening of tax enforcement for large corporations within Minnesota. By focusing on corporations with high revenue, the initiative aims to capture and collect any unpaid or underreported taxes, improving the overall tax compliance landscape in the state.

Relevant Terms

corporate tax compliance, corporate franchise tax, tax liabilities, taxable income, enforcement activities, appropriated funds, fiscal year 2026, general fund, tax compliance initiative, gross receipts, sales reporting, Minnesota sales.