This bill proposes extensive changes to Minnesota's tax laws, affecting individual income taxes, corporate franchise taxes, sales and use taxes, and property taxes. A significant feature is the introduction 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 includes new provisions for political contribution refunds, modifies tax credits for beginning farmers, and repeals the tax on illegal cannabis and controlled substances. Additionally, it establishes a tax filing modernization account with a $5 million appropriation and introduces a vendor allowance for qualifying retailers, which allows them to retain a portion of sales tax collected.

Further amendments focus on property tax regulations, including adjustments to exemptions for veterans and senior citizens, and the establishment of new tax increment financing (TIF) authorities for various cities. The bill also clarifies definitions related to property classifications and introduces new requirements for tax expenditures and bond issuance by municipalities. Effective dates for these changes vary, with some provisions taking effect immediately and others set for future dates, indicating a comprehensive approach to modernizing Minnesota's tax framework and enhancing fiscal accountability.

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