The bill proposes significant updates to Minnesota's tax laws, particularly concerning individual income and corporate franchise taxes, as well as fire and police state aids. Key amendments include the introduction of a composite income tax return for nonresident partners, allowing partnerships to file on behalf of partners without other Minnesota source income. It also clarifies the definitions of "income" for partnerships and qualifying entities, ensuring tax liabilities are calculated based on the highest individual tax rates without nonbusiness deductions or personal exemptions. Additionally, the bill establishes a pass-through entity tax for qualifying entities, detailing reporting and payment requirements, and includes provisions for tax credits related to earned income and taxes paid to other states.

Moreover, the bill amends various sections related to property taxes, fire and police state aids, and data practices. It changes the deadline for homestead classification applications and introduces new definitions, such as "apportionment agreement." The bill also specifies that fire and police state aid amounts will not be affected by certain tax credits and outlines a process for correcting aid payment errors. In terms of data practices, it enhances data sharing between state agencies and updates requirements for publishing lists of tax preparers facing penalties. The effective dates for many provisions vary, with some taking effect immediately and others set for future taxable years or calendar years. Overall, the bill aims to streamline tax processes and improve the efficiency of state aid distribution in Minnesota.

Statutes affected:
Introduction: 289A.08, 289A.382, 289A.50, 290.01, 290.06, 290.0671, 290.0685, 290.92, 290.9705, 290A.03, 6.495, 477B.01, 477B.02, 477B.03, 477B.04, 477C.02, 477C.03, 477C.04, 13.46, 270C.13, 270C.446, 290A.19, 299C.76, 270C.19, 295.50, 296A.083, 297A.61