This bill proposes significant changes to Minnesota's tax laws, affecting various areas such as individual income taxes, corporate franchise taxes, sales and use taxes, and property taxes. Key provisions include the repeal of taxes on illegal cannabis and controlled substances, adjustments to political contribution refunds, and the introduction of new tax credits and exemptions for agricultural assets. The bill also aims to enhance local government aid, modify tax increment financing provisions, and implement new reporting requirements. Notably, it establishes a tax filing modernization account to improve the process for filing individual income tax returns, with a one-time transfer of $5 million from the general fund for modernization efforts.

Additionally, the bill introduces new definitions and classifications related to agricultural assets and beginning farmers, modifies data privacy regulations for electronic reporting systems, and clarifies tax benefits for military service members. It expands the definition of "active service" for military compensation and introduces new tax subtractions for certain payments. The bill also revises property tax exemptions for veterans with disabilities, increases the market value exclusion for qualifying veterans, and establishes a new agricultural water quality credit. Overall, the legislation aims to streamline tax processes, enhance support for specific groups, and ensure clarity in tax-related provisions while setting various effective dates for implementation.

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