This bill establishes a new tax on the growth of certain assets held by colleges and universities in Minnesota, creating a dedicated account in the special revenue fund known as the "higher education assets growth account." The bill amends Minnesota Statutes 2024, section 136A.121, by adding a subdivision that outlines the creation and purpose of this account, which will be used to fund the state grant program. The account will retain any unspent funds at the end of the fiscal year, ensuring that the money remains available for future use.

Additionally, the bill introduces a new section in Minnesota Statutes, chapter 290, which details the tax structure based on asset growth for applicable educational institutions. The tax rates are tiered based on per-student assets, with rates of 15%, 20%, and 25% applied to different asset thresholds. The bill also includes provisions for the administration of the tax, including reporting requirements and the deposit of revenues into the newly established account. The effective date for the tax is set for taxable years beginning after December 31, 2025.

Statutes affected:
Introduction: 136A.121