The 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 through administrative rules, which will include an application procedure, potential fees, and a process for communication between taxpayers and the commissioner. The bill specifies that the commissioner may set a fee schedule to recover costs associated with issuing rulings, and if a ruling is not issued within 90 days, the application fee must be refunded.

Additionally, the bill outlines the conditions under which a private letter ruling will be binding on the commissioner, emphasizing the importance of accurate information provided by the taxpayer. It mandates that the commissioner make these rulings publicly accessible while ensuring taxpayer anonymity. Furthermore, the commissioner is required to report to the legislature every odd-numbered year on various aspects of the program, including the number of applications and rulings issued, as well as any fees refunded. The provisions of this bill will take effect the day after final enactment, with the first legislative report due by January 31, 2028.