The proposed bill seeks to amend various tax-related provisions in Minnesota, focusing on individual income taxes, corporate franchise taxes, sales and use taxes, and property taxes. Key highlights include the establishment of a direct free filing system for individual income tax returns, modifications to political contribution refunds, and the introduction of new tax exemptions. The bill also repeals the tax on illegal cannabis and controlled substances, creates a legislative task force on local sales and use taxes, and introduces new data privacy regulations for electronic reporting systems. Specific legal amendments include the addition of provisions for tax deductions related to discharges of indebtedness and student loan educational assistance payments, as well as changes to the political contribution refund process and the introduction of a "baby bonus" credit for qualifying children.

Additionally, the bill addresses property tax exemptions, particularly for rental housing and properties owned by Indian Tribes, and proposes amendments to tax increment financing (TIF) districts to streamline processes and extend timelines for certain projects. It also includes provisions for tax relief related to Social Security benefits and qualified retirement benefits, as well as tax exemptions for sustainable aviation fuel facilities. The bill outlines penalties for non-compliance with tax regulations and establishes a framework for taxing illegal cannabis and controlled substances. Overall, the bill aims to modernize tax administration, enhance taxpayer assistance, and promote economic development through various tax incentives and exemptions.

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