This bill establishes a private letter ruling program within the Minnesota Department of Revenue, aimed at providing taxpayers with guidance on how tax law applies to specific transactions or situations. By January 1, 2026, the commissioner is required to implement this program, which will include an application procedure for taxpayers or their representatives to request rulings. The bill outlines that the commissioner may set a fee schedule to cover the costs of preparing these rulings and mandates that any fees collected be deposited into a special revenue fund to offset related administrative expenses. Additionally, if a ruling is not issued within 90 days of a completed application, the application fee must be refunded.

The bill also stipulates that private letter rulings will be binding on the commissioner for the taxpayer if certain conditions are met, such as the absence of misstatements in the application and the facts remaining materially unchanged. However, these rulings will not have precedential effect for other taxpayers. Furthermore, the commissioner is tasked with making these rulings publicly accessible on the department's website while ensuring taxpayer anonymity. A legislative report detailing various statistics about the program, including the number of applications and rulings issued, is required every odd-numbered year, with the first report due by January 31, 2028.