The proposed bill seeks to amend various tax provisions in Minnesota, focusing on individual income and corporate franchise taxes, sales and use taxes, property taxes, and more. Key changes include the repeal of the tax on illegal cannabis and controlled substances, modifications to political contribution refunds, and adjustments to property tax credits and classifications. The bill introduces new provisions for land bank organizations, local government aid penalty forgiveness, and special tax increment financing. It also establishes new definitions and classifications for agricultural assets and beginning farmers, while requiring the Minnesota Campaign Finance Board to develop an electronic reporting system for political contributions. Effective dates for various sections are included, with some provisions set to take effect as early as January 1, 2027.

Additionally, the bill modifies existing tax regulations, including the introduction of a subtraction for student loan educational assistance payments and changes to the net investment income tax rate for high-income individuals. It also revises the process for claiming refunds for political contributions, expands definitions related to education expenses, and updates property tax exemptions for veterans with disabilities. The bill aims to enhance tax benefits for specific groups, streamline tax processes, and ensure compliance with current practices, while also addressing economic development initiatives in border cities and establishing a tax filing modernization account to improve the state’s tax filing processes.

Statutes affected:
Introduction: 41A.30, 270C.445, 290.068, 290.0695, 270.075, 272.02, 273.19, 273.38, 273.41, 477A.19, 297A.61, 297A.62, 297A.65, 297F.25, 289A.60, 290.0693, 290A.19, 290C.07, 295.81, 477A.32
1st Engrossment: 10A.02, 10A.322, 41B.0391, 116U.27, 270C.445, 289A.08, 290.0132, 290.033, 290.06, 290.0674, 290.0681, 290.0686, 290.0693, 290.0695, 290.091, 290.095, 290.92, 290A.03, 272.01, 272.02, 273.117, 273.124, 273.128, 273.13, 273.1392, 273.1393, 273.19, 273.38, 273.41, 275.065, 276.04, 279.37, 449.08, 469.171, 469.1731, 469.1812, 469.1813, 289A.20, 289A.60, 295.54, 297A.68, 297A.70, 297A.99, 297A.9915, 297A.9925, 126C.13, 126C.17, 477A.011, 477A.013, 477A.03, 477A.23, 477A.30, 469.176, 373.40, 446A.086, 462C.04, 469.104, 469.154, 474A.091, 475.521, 641.23, 41A.30, 270B.161, 272.03, 273.12, 289A.02, 289A.12, 289A.19, 290.0133, 290.0134, 290.0135, 290.09, 290.05, 290.20, 290.923, 297A.71, 298.001, 298.01, 298.015, 298.016, 298.018, 298.17, 3.192, 3.8855, 8.31, 14.03, 16A.151, 37.31, 270C.07, 270C.08, 270C.085, 270C.11, 289A.51, 290A.19, 290C.07, 295.81, 299C.76, 473.756, 473.757, 473.759, 609.902, 477A.32, 13.4967, 289A.31, 290.01, 297A.75, 297A.94, 297A.995, 297I.20
2nd Engrossment: 10A.02, 10A.322, 41B.0391, 270C.445, 289A.08, 290.0132, 290.033, 290.06, 290.0674, 290.0681, 290.0686, 290.0693, 290.0695, 290.091, 290.095, 290.92, 290A.03, 272.01, 272.02, 273.117, 273.124, 273.128, 273.13, 273.1392, 273.1393, 273.19, 273.38, 273.41, 275.065, 276.04, 279.37, 449.08, 469.171, 469.1731, 469.1812, 469.1813, 289A.20, 289A.60, 295.54, 297A.68, 297A.70, 297A.99, 297A.9915, 297A.9925, 126C.13, 126C.17, 477A.011, 477A.013, 477A.03, 477A.23, 477A.30, 469.176, 373.40, 446A.086, 462C.04, 469.104, 469.154, 474A.091, 475.521, 641.23, 41A.30, 270B.161, 272.03, 273.12, 289A.02, 289A.12, 289A.19, 290.0133, 290.0134, 290.0135, 290.09, 290.05, 290.20, 290.923, 297A.71, 298.001, 298.01, 298.015, 298.016, 298.018, 298.17, 3.192, 3.8855, 8.31, 14.03, 16A.151, 37.31, 270C.07, 270C.08, 270C.085, 270C.11, 289A.51, 290A.19, 290C.07, 295.81, 299C.76, 473.756, 473.757, 473.759, 609.902, 477A.32, 13.4967, 116U.27, 289A.31, 290.01, 297A.75, 297A.94, 297A.995, 297I.20