The bill proposes a series of amendments to Minnesota's tax laws, focusing on individual income and corporate franchise taxes, as well as fire and police state aids. Key changes include the introduction of a composite income tax return for nonresident partners, allowing partnerships to file on behalf of those without other Minnesota source income. The bill clarifies the definition of "income" for tax purposes and establishes a pass-through entity tax for qualifying entities. It also sets forth reporting and payment requirements for partnerships, limits nonresident withholding tax refunds, and introduces new provisions for income allocation and tax credits, including a credit for taxes paid to other states and earned income credits with phaseout thresholds.

Additionally, the bill modifies regulations related to fire and police state aids, changing the deadline for homestead classification applications and introducing new definitions such as "apportionment agreement." It specifies that fire departments must be dispatched by a public safety answering point and establishes penalties for late certifications related to fire state aid. The bill also clarifies the criteria for calculating fire state aid allocations and streamlines the payment process for municipalities and independent nonprofit firefighting corporations. Furthermore, it addresses tax agreements with federally recognized Indian Tribes, allowing for refunds of sales and excise taxes paid by Tribal members and updating the definition of "state" to include U.S. territories. The effective dates for various provisions vary, with some taking effect immediately and others set for future years.

Statutes affected:
Introduction: 289A.08, 289A.382, 289A.50, 290.01, 290.06, 290.0671, 290.0685, 290.92, 290.9705, 290A.03, 6.495, 477B.01, 477B.02, 477B.03, 477B.04, 477C.02, 477C.03, 477C.04, 13.46, 270C.13, 270C.446, 290A.19, 299C.76, 270C.19, 295.50, 296A.083, 297A.61
1st Engrossment: 289A.08, 289A.382, 289A.50, 290.01, 290.06, 290.0671, 290.0685, 290.92, 290.9705, 290A.03, 6.495, 477B.01, 477B.02, 477B.03, 477B.04, 477C.02, 477C.03, 477C.04, 270C.19, 295.50, 296A.083, 297A.61
1st Engrossment: 289A.08, 289A.382, 289A.50, 290.01, 290.06, 290.0671, 290.0685, 290.92, 290.9705, 290A.03, 6.495, 477B.01, 477B.02, 477B.03, 477B.04, 477C.02, 477C.03, 477C.04, 270C.19, 295.50, 296A.083, 297A.61