This bill proposes the establishment of a Minnesota wealth tax, codified under a new section in Minnesota Statutes, chapter 290. The wealth tax will be imposed annually at a rate of one percent on the taxable wealth of individuals or trusts exceeding $10,000,000. Taxable wealth is defined as the total value of a taxpayer's property, both real and personal, minus any debts and financial obligations, with the stipulation that property located outside of Minnesota is excluded. Additionally, the bill clarifies how the situs of property is determined for nonresident taxpayers with ownership interests in pass-through entities, ensuring that property values are assessed similarly to gross estate values under federal law.

The bill also specifies that the wealth tax is in addition to other existing taxes, including those imposed under chapter 291 and section 289A.08. It includes definitions for key terms such as "pass-through entity" and "taxable wealth," and outlines the effective date for the tax, which will apply to taxable years beginning after December 31, 2025.