This bill proposes extensive changes to Minnesota's tax laws, affecting individual income taxes, corporate franchise taxes, sales and use taxes, excise taxes, and property taxes. A significant feature is the establishment of a direct free filing system for individual income tax returns, allowing taxpayers to file electronically at no cost starting in the 2026 tax year. The bill also introduces new provisions for political contribution refunds, including data privacy measures and electronic receipt requirements for contributions of $10 or more. Additionally, it modifies various tax credits, exemptions, and classifications, while repealing the tax on illegal cannabis and controlled substances. Specific amendments include the introduction of a new subdivision regarding discharges of indebtedness and changes to the Rural Finance Authority's duties.

Further amendments focus on enhancing housing support, streamlining tax processes, and providing financial assistance to specific groups. The bill raises the income threshold for homeowners eligible for tax deferral and establishes new tax increment financing (TIF) authorities for several cities, allowing them to create redevelopment districts under special rules. It also introduces a tax framework for illegal cannabis, imposing specific tax rates and penalties for non-compliance, while allocating funds to local governments based on the number of licensed cannabis businesses. Overall, the bill aims to improve tax administration efficiency, support economic development, and enhance taxpayer support in Minnesota.

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, 270C.445, 290.0132, 290.06, 290.0661, 290.0695, 290A.03, 462A.39, 462A.40, 270C.15, 289A.20, 297A.68, 297A.77, 297A.99, 297F.01, 297F.03, 297F.04, 297F.06, 297F.09, 297G.09, 272.01, 272.02, 273.13, 273.38, 273.41, 290B.03, 290B.04, 290B.05, 469.1812, 469.1813, 469.174, 469.175, 469.176, 469.1761, 469.1763, 469.177, 373.40, 446A.086, 462C.04, 469.104, 469.154, 474A.091, 475.521, 641.23, 3.192, 3.8855, 37.31, 270C.11, 289A.60, 290.0693, 290A.19, 290C.07, 295.53, 295.54, 295.81, 297H.01, 297H.13, 609.902, 477A.32, 116U.27, 290.01, 290.0134, 297A.71, 297A.75, 297A.94, 297A.995, 289A.12, 297E.06, 297I.20
2nd Engrossment: 10A.02, 10A.322, 41B.0391, 270C.445, 290.0132, 290.06, 290.0661, 290.0695, 290A.03, 462A.39, 462A.40, 270C.15, 289A.20, 297A.68, 297A.77, 297A.99, 297F.01, 297F.03, 297F.04, 297F.06, 297F.09, 297G.09, 272.01, 272.02, 273.13, 273.38, 273.41, 290B.03, 290B.04, 290B.05, 469.1812, 469.1813, 469.174, 469.175, 469.176, 469.1761, 469.1763, 469.177, 373.40, 446A.086, 462C.04, 469.104, 469.154, 474A.091, 475.521, 641.23, 3.192, 3.8855, 37.31, 270C.11, 289A.60, 290.0693, 290A.19, 290C.07, 295.53, 295.54, 295.81, 297H.01, 297H.13, 609.902, 477A.32, 116U.27, 290.01, 290.0134, 297A.71, 297A.75, 297A.94, 297A.995, 289A.12, 297E.06, 297I.20