This bill proposes extensive changes to Minnesota's tax provisions, affecting individual income taxes, corporate franchise taxes, property taxes, and sales and use taxes. Key modifications include the repeal of the assignability of the education credit, the introduction of a partially refundable research credit, and adjustments to the short line railroad credit and airline flight property tax. The bill aims to lower the sales and use tax rate from 6.5% to 6.425% while expanding the tax base to encompass certain professional services, including accounting and legal services. It also cancels the local government cannabis aid and reduces appropriations for aquatic invasive species prevention aid. Notably, the bill introduces a supplemental tax credit for sustainable aviation fuel producers, allowing for an additional $0.02 per gallon for each percentage reduction in carbon intensity beyond 50%, capped at $0.50 per gallon.

Additionally, the bill establishes a tax filing modernization initiative, creating a dedicated account funded by a one-time transfer of $5,000,000 from the general fund in fiscal year 2024. This account will support the commissioner of revenue in updating tax forms and developing free filing options for individual income tax. The bill also mandates the commissioner of transportation to provide credit certificates to the commissioner of revenue, limiting issuance to one per eligible taxpayer per year, and introduces penalties for property owners who fail to provide certificates of rent paid. The effective dates for many provisions are retroactive to taxable years beginning after December 31, 2023, or after December 31, 2024, depending on the specific section, with some provisions taking effect immediately or on specific future dates.

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