SF45

Purpose

• The bill addresses taxation policy by altering how tax expenditure oversight works. It aims to modify requirements for the Tax Expenditure Review Commission and to repeal certain procedures related to creating or renewing tax expenditures. It also makes targeted changes to several Minnesota Statutes related to tax expenditures and their review.

Main Provisions

• Change to the Tax Expenditure Review Commission requirements: The bill modifies what is required of the commission, potentially reducing or altering its oversight duties.
• Repeal of requirements for new or renewed tax expenditures: The bill removes legislative requirements tied to creating or renewing tax expenditures, shifting how these expenditures are reviewed or approved.
• Statutory revisions: The bill amends Minnesota Statutes 2024 sections 3.8855 subdivisions 2, 3, 4, 5, 7, and 8, and 270C.11 subdivision 4.
• Repeal of a statute: The bill repeals Minnesota Statutes 2024 section 3.192.1.7.
• Definitions for key terms: Section 3.8855 subdivision 2 is amended to define who is the “commissioner” (the commissioner of revenue) and to define “significant tax expenditure” and “tax expenditure” using the definitions from Minnesota Statutes 270C.11 subdivision 6.

Significant Changes to Existing Law

• Oversight and procedural changes: By modifying the Tax Expenditure Review Commission requirements and repealing certain review procedures, the bill would change how tax expenditures are evaluated and approved.
• Reduction or removal of legislative gatekeeping: Repealing the legislative requirements for new or renewed tax expenditures reduces the formal legislative process for approving these expenditures.
• Scope of defined terms: The bill formalizes definitions for “commissioner,” “significant tax expenditure,” and “tax expenditure” to align with the referenced statutory definitions, which can affect interpretation and application of related provisions.

Definitions (Key Terms in Context)

• Commissioner: The commissioner of revenue.
• Tax expenditure: As defined in Minnesota Statutes 270C.11 subdivision 6.
• Significant tax expenditure: As defined in Minnesota Statutes 270C.11 subdivision 6.

Additional Notes

• The exact content of the repealed sections (e.g., 3.192.1.7) is not provided in the excerpt, but the bill explicitly repeals that statute.
• The references to Minnesota Statutes 2024 indicate that these changes are updating or superseding existing law as of 2024.

Relevant Terms - Tax expenditure - Significant tax expenditure - Tax Expenditure Review Commission - Commissioner of Revenue - Minnesota Statutes - 3.8855 - 270C.11 - Subdivision 6 (as it relates to definitions) - 3.192.1.7