The proposed bill establishes a new tax on individuals and organizations that have been convicted of fraud or have benefited from fraudulent activities. Specifically, a tax equal to 100 percent of the amounts obtained through fraud is imposed on those convicted by a state or federal court, as well as on those determined by the commissioner of revenue to have engaged in fraud. This tax also applies to individuals or organizations that receive compensation from those convicted of fraud or determined to have obtained money through fraudulent means. Notably, the tax is applicable regardless of any restitution or penalties that may have been imposed or paid.

The bill outlines the role of the commissioner of revenue in investigating potential fraud cases and establishing the payment schedule and enforcement mechanisms for the tax. Additionally, it mandates that the funds collected from this tax be deposited into a tax relief account, which is designated for income or property tax relief. The provisions of the bill are set to take effect retroactively for fraud determinations made after December 31, 2019.