This bill proposes the repeal of the estate tax in Minnesota, accompanied by various amendments to existing statutes to reflect this change. It includes the deletion of references to the estate tax in multiple sections of the Minnesota Statutes, affecting areas such as tax data classification, tax laws, and refund claims. The bill establishes that the repeal will take effect for estates of decedents dying after December 31, 2025, allowing a transition period for taxpayers and the Department of Revenue. Additionally, it clarifies the apportionment of estate and generation-skipping taxes according to federal law, with provisions for court determination of tax apportionment and conditions under which personal representatives can withhold property distributions to cover tax liabilities.

Moreover, the bill amends various sections related to the payment and treatment of estate taxes, including the prohibition of extra fees for mail payments and the commissioner’s authority to extend payment periods. It also introduces specific provisions for qualified small business and farm properties, detailing eligibility for favorable tax treatment and establishing a recapture tax for qualified heirs who dispose of such properties within three years of the decedent's death. The bill further clarifies the responsibilities of representatives and trustees in collecting taxes on property transfers and emphasizes the requirement for all taxes to be paid to the commissioner and deposited into the state treasury. Overall, the bill aims to streamline estate tax processes and provide clarity on the treatment of various property types within the estate tax framework.

Statutes affected:
Introduction: 13.4963, 270B.01, 270B.03, 289A.01, 289A.02, 289A.35, 289A.38, 289A.50, 289A.56, 354A.11, 356.401, 524.3