The proposed bill aims to prohibit the imposition of certain taxes during a designated "shutdown period," which begins on July 1 of an odd-numbered year when no legislation has been enacted to appropriate funds for government operations. Specifically, the bill amends Minnesota Statutes 2024, section 290.0132, by adding a new subdivision that allows for wages paid during this shutdown period to be considered a subtraction for tax purposes, meaning no tax will be deducted from these wages. Additionally, the bill introduces a new section, 290.994, which defines "shutdown period" and outlines the types of taxes that will not be imposed during this time.

Under the new provisions, no tax will be deducted from wages paid by employers during the shutdown period or for ten days following it. Furthermore, no consumption taxes will be imposed on transactions occurring during the shutdown period or for three days thereafter. The effective date for these changes is set for the day following final enactment of the bill.

Statutes affected:
Introduction: 290.0132