Minnesota 2025-2026 Regular Session

Minnesota House Bill HF2437 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to taxation; modifying individual income taxes, corporate franchise taxes,
3	3	1.3 property taxes, local government aids, sales and use taxes, and other taxes and
4	4	1.4 tax-related provisions; repealing the assignability of the education credit; making
5	5	1.5 the research credit partially refundable; modifying transfer provisions for the short
6	6	1.6 line railroad credit; modifying the airline flight property tax; modifying provisions
7	7	1.7 related to attachments and appurtenances for property taxes; modifying provisions
8	8	1.8 for leased tax-exempt property; reducing the appropriation for aquatic invasive
9	9	1.9 species prevention aid; lowering the sales and use tax rate and expanding the tax
10	10	1.10 base to include sales of certain professional services; modifying provisions for
11	11	1.11 certificates of rent paid; modifying calculations for payments and other provisions
12	12	1.12 under the Sustainable Forest Incentive Act; repealing local government cannabis
13	13	1.13 aid and partial cannabis tax revenue dedication; repealing provisions related to tax
14	14	1.14 filing modernization; canceling amounts; making related clarifying changes;
15	15	1.15 requiring a report; appropriating money; amending Minnesota Statutes 2024,
16	16	1.16 sections 41A.30, subdivisions 1, 2, 5, 7; 270.075, by adding a subdivision;
17	17	1.17 270C.445, subdivision 3; 272.02, subdivision 19; 273.19, subdivision 1; 273.38;
18	18	1.18 273.41; 289A.60, subdivision 12; 290.068, subdivision 3, by adding subdivisions;
19	19	1.19 290.0693, subdivision 4; 290.0695, subdivisions 1, 3; 290A.19; 290C.07; 295.81,
20	20	1.20 subdivision 10; 297A.61, subdivision 3; 297A.62, subdivision 1; 297A.65; 297F.25,
21	21	1.21 subdivision 1; 477A.19, subdivision 5; repealing Minnesota Statutes 2024, sections
22	22	1.22 13.4967, subdivision 2a; 270.075, subdivision 1; 290.0679; 477A.32; Laws 2023,
23	23	1.23 chapter 64, article 15, section 24.
24	24	1.24BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
25	25	1.25 ARTICLE 1
26	26	1.26 INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES
27	27	1.27 Section 1. Minnesota Statutes 2024, section 41A.30, subdivision 1, is amended to read:
28	28	1.28 Subdivision 1.Definitions.(a) For purposes of this section, the following terms have
29	29	1.29the meanings given.
30	30	1.30 (b) "Aircraft" has the meaning given in section 296A.01, subdivision 3.
31	31	1Article 1 Section 1.
32	32	REVISOR EAP/HL 25-0010702/27/25
33	33	State of Minnesota
34	34	This Document can be made available
35	35	in alternative formats upon request
36	36	HOUSE OF REPRESENTATIVES
37	37	H. F. No. 2437
38	38	NINETY-FOURTH SESSION
39	39	Authored by Davids and Gomez03/17/2025
40	40	The bill was read for the first time and referred to the Committee on Taxes 2.1 (c) "Aviation gasoline" has the meaning given in section 296A.01, subdivision 7.
41	41	2.2 (d) "Commissioner" means the commissioner of agriculture.
42	42	2.3 (e) "Jet fuel" has the meaning given in section 296A.01, subdivision 8.
43	43	2.4 (f) "Qualifying taxpayer" means a taxpayer, as defined in section 290.01, subdivision
44	44	2.56, that is engaged in the business of:
45	45	2.6 (1) producing sustainable aviation fuel; or
46	46	2.7 (2) blending sustainable aviation fuel with aviation gasoline or jet fuel.
47	47	2.8 (g) "Sustainable aviation fuel" means liquid fuel that:
48	48	2.9 (1) is derived from biomass, as defined in section 41A.15, subdivision 2e, or gaseous
49	49	2.10carbon oxides;
50	50	2.11 (2) is not derived from palm fatty acid distillates; and
51	51	2.12 (3) achieves at least a 50 percent life cycle greenhouse gas emissions reduction in
52	52	2.13comparison with petroleum-based aviation gasoline, aviation turbine fuel, and jet fuel as
53	53	2.14determined by a test that shows:
54	54	2.15 (i) that the fuel production pathway achieves at least a 50 percent life cycle greenhouse
55	55	2.16gas emissions reduction in comparison with petroleum-based aviation gasoline, aviation
56	56	2.17turbine fuel, and jet fuel utilizing the most recent version of Argonne National Laboratory's
57	57	2.18Greenhouse Gases, Regulated Emissions, and Energy Use in Technologies (GREET) model
58	58	2.19that accounts for reduced emissions throughout the fuel production process; or
59	59	2.20 (ii) that the fuel production pathway achieves at least a 50 percent reduction of the
60	60	2.21aggregate attributional core life cycle emissions and the positive induced land use change
61	61	2.22values under the life cycle methodology for sustainable aviation fuels adopted by the
62	62	2.23International Civil Aviation Organization with the agreement of the United States.
63	63	2.24 EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
64	64	2.25after December 31, 2023, for sustainable aviation fuel sold after June 30, 2024.
65	65	2.26 Sec. 2. Minnesota Statutes 2024, section 41A.30, subdivision 2, is amended to read:
66	66	2.27 Subd. 2.Tax credit establishment.(a) A qualifying taxpayer may claim a tax credit
67	67	2.28against the tax due under chapter 290 equal to $1.50 for each gallon of sustainable aviation
68	68	2.29fuel that is:
69	69	2.30 (1) produced in Minnesota or blended with aviation or gasoline or jet fuel in Minnesota;
70	70	2.31and
71	71	2Article 1 Sec. 2.
72	72	REVISOR EAP/HL 25-0010702/27/25 3.1 (2) sold in Minnesota to a purchaser who certifies that the sustainable aviation fuel is
73	73	3.2for use as fuel in an aircraft departing from an airport in Minnesota.
74	74	3.3 (b) The credit may be claimed only after approval and certification by the commissioner
75	75	3.4and is limited to the amount stated on the credit certificate issued under subdivision 3. A
76	76	3.5qualifying taxpayer must apply to the commissioner for certification and allocation of a
77	77	3.6credit in a form and manner prescribed by the commissioner.
78	78	3.7 (c) A qualifying taxpayer may claim a credit for blending or producing sustainable
79	79	3.8aviation fuel, but not both. If sustainable aviation fuel is blended with aviation gasoline or
80	80	3.9jet fuel, the credit is allowed only for the portion of sustainable aviation fuel that is included
81	81	3.10in the blended fuel.
82	82	3.11 (d) If the amount of credit that the taxpayer is eligible to receive under this section
83	83	3.12exceeds the liability for tax under chapter 290, the commissioner of revenue must refund
84	84	3.13the excess to the taxpayer.
85	85	3.14 (e) A qualifying taxpayer may claim a supplemental tax credit against the tax due under
86	86	3.15chapter 290 equal to the rate of $0.02 per gallon for each additional whole percentage carbon
87	87	3.16intensity reduction beyond 50 percent, but capped at $0.50 per gallon.
88	88	3.17 EFFECTIVE DATE.This section is effective retroactively for taxable years beginning
89	89	3.18after December 31, 2023, for sustainable aviation fuel sold after June 30, 2024.
90	90	3.19 Sec. 3. Minnesota Statutes 2024, section 41A.30, subdivision 5, is amended to read:
91	91	3.20 Subd. 5.Allocation limits.(a) For tax credits allowed under subdivision 2, the
92	92	3.21commissioner must not issue credit certificates for more than:
93	93	3.22 (1) $7,400,000 for each of fiscal year years 2025 to 2027; and
94	94	3.23 (2) $2,100,000 for each of fiscal years 2026 and 2027 2028 to 2035.
95	95	3.24 (b) If the entire amount authorized under paragraph (a) is not allocated in that fiscal year
96	96	3.252025 or 2026, any remaining amount is carried forward into the next fiscal year and is
97	97	3.26available for allocation through fiscal year 2030 2035 until the entire allocation has been
98	98	3.27made. The commissioner must not issue any credit certificates for fiscal years beginning
99	99	3.28after June 30, 2030 2035, and any unallocated amounts cancel on that date.
100	100	3.29 EFFECTIVE DATE.This section is effective the day following final enactment.
101	101	3Article 1 Sec. 3.
102	102	REVISOR EAP/HL 25-0010702/27/25 4.1 Sec. 4. Minnesota Statutes 2024, section 41A.30, subdivision 7, is amended to read:
103	103	4.2 Subd. 7.Expiration.This section expires for taxable years beginning after December
104	104	4.331, 2030 2035.
105	105	4.4 EFFECTIVE DATE.This section is effective the day following final enactment.
106	106	4.5 Sec. 5. Minnesota Statutes 2024, section 270C.445, subdivision 3, is amended to read:
107	107	4.6 Subd. 3.Standards of conduct.No tax preparer shall:
108	108	4.7 (1) without good cause fail to promptly, diligently, and without unreasonable delay
109	109	4.8complete a client's return;
110	110	4.9 (2) obtain the signature of a client to a return or authorizing document that contains
111	111	4.10blank spaces to be filled in after it has been signed;
112	112	4.11 (3) fail to sign a client's return when compensation for services rendered has been made;
113	113	4.12 (4) fail to provide on a client's return the preparer tax identification number when required
114	114	4.13under section 6109(a)(4) of the Internal Revenue Code or section 289A.60, subdivision 28;
115	115	4.14 (5) fail or refuse to give a client a copy of any document requiring the client's signature
116	116	4.15within a reasonable time after the client signs the document;
117	117	4.16 (6) fail to retain for at least four years a copy of a client's returns;
118	118	4.17 (7) fail to maintain a confidential relationship with clients or former clients;
119	119	4.18 (8) fail to take commercially reasonable measures to safeguard a client's nonpublic
120	120	4.19personal information;
121	121	4.20 (9) make, authorize, publish, disseminate, circulate, or cause to make, either directly or
122	122	4.21indirectly, any false, deceptive, or misleading statement or representation relating to or in
123	123	4.22connection with the offering or provision of tax preparation services;
124	124	4.23 (10) require a client to enter into a loan arrangement in order to complete a client's return;
125	125	4.24 (11) claim credits or deductions on a client's return for which the tax preparer knows or
126	126	4.25reasonably should know the client does not qualify;
127	127	4.26 (12) report a household income on a client's claim filed under chapter 290A that the tax
128	128	4.27preparer knows or reasonably should know is not accurate;
129	129	4.28 (13) engage in any conduct that is subject to a penalty under section 289A.60, subdivision
130	130	4.2913, 20, 20a, 26, or 28;
131	131	4Article 1 Sec. 5.
132	132	REVISOR EAP/HL 25-0010702/27/25 5.1 (14) whether or not acting as a taxpayer representative, fail to conform to the standards
133	133	5.2of conduct required by Minnesota Rules, part 8052.0300, subpart 4;
134	134	5.3 (15) whether or not acting as a taxpayer representative, engage in any conduct that is
135	135	5.4incompetent conduct under Minnesota Rules, part 8052.0300, subpart 5;
136	136	5.5 (16) whether or not acting as a taxpayer representative, engage in any conduct that is
137	137	5.6disreputable conduct under Minnesota Rules, part 8052.0300, subpart 6;
138	138	5.7 (17) charge, offer to accept, or accept a fee based upon a percentage of an anticipated
139	139	5.8refund for tax preparation services;
140	140	5.9 (18) under any circumstances, withhold or fail to return to a client a document provided
141	141	5.10by the client for use in preparing the client's return;
142	142	5.11 (19) take control or ownership of a client's refund by any means, including:
143	143	5.12 (i) directly or indirectly endorsing or otherwise negotiating a check or other refund
144	144	5.13instrument, including an electronic version of a check;
145	145	5.14 (ii) directing an electronic or direct deposit of the refund into an account unless the
146	146	5.15client's name is on the account; and
147	147	5.16 (iii) establishing or using an account in the preparer's name to receive a client's refund
148	148	5.17through a direct deposit or any other instrument unless the client's name is also on the
149	149	5.18account, except that a taxpayer may assign the portion of a refund representing the Minnesota
150	150	5.19education credit available under section 290.0674 to a bank account without the client's
151	151	5.20name, as provided under section 290.0679;
152	152	5.21 (20) fail to act in the best interests of the client;
153	153	5.22 (21) fail to safeguard and account for any money handled for the client;
154	154	5.23 (22) fail to disclose all material facts of which the preparer has knowledge which might
155	155	5.24reasonably affect the client's rights and interests;
156	156	5.25 (23) violate any provision of section 332.37;
157	157	5.26 (24) include any of the following in any document provided or signed in connection
158	158	5.27with the provision of tax preparation services:
159	159	5.28 (i) a hold harmless clause;
160	160	5.29 (ii) a confession of judgment or a power of attorney to confess judgment against the
161	161	5.30client or appear as the client in any judicial proceeding;
162	162	5Article 1 Sec. 5.
163	163	REVISOR EAP/HL 25-0010702/27/25 6.1 (iii) a waiver of the right to a jury trial, if applicable, in any action brought by or against
164	164	6.2a debtor;
165	165	6.3 (iv) an assignment of or an order for payment of wages or other compensation for
166	166	6.4services;
167	167	6.5 (v) a provision in which the client agrees not to assert any claim or defense otherwise
168	168	6.6available;
169	169	6.7 (vi) a waiver of any provision of this section or a release of any obligation required to
170	170	6.8be performed on the part of the tax preparer; or
171	171	6.9 (vii) a waiver of the right to injunctive, declaratory, or other equitable relief or relief on
172	172	6.10a class basis; or
173	173	6.11 (25) if making, providing, or facilitating a refund anticipation loan, fail to provide all
174	174	6.12disclosures required by the federal Truth in Lending Act, United States Code, title 15, in a
175	175	6.13form that may be retained by the client.
176	176	6.14 EFFECTIVE DATE.This section is effective for taxable years beginning after December
177	177	6.1531, 2025.
178	178	6.16 Sec. 6. Minnesota Statutes 2024, section 290.068, subdivision 3, is amended to read:
179	179	6.17 Subd. 3.Limitation; carryover.(a) The credit for taxable years beginning before January
180	180	6.181, 2025, shall not exceed the liability for tax.
181	181	6.19 (b) If the amount of the credit allowed for the taxable year exceeds the liability for tax
182	182	6.20of the taxpayer, but is allowed as a result of the liability for tax of other members of the
183	183	6.21unitary group for the taxable year, the taxpayer must allocate the excess as a research credit
184	184	6.22to another member of the unitary group.
185	185	6.23 (b) (c) In the case of a corporation which is a partner in a partnership, the credit allowed
186	186	6.24for the taxable year shall not exceed the lesser of the amount determined under paragraph
187	187	6.25(a) for the taxable year or an amount (separately computed with respect to the corporation's
188	188	6.26interest in the trade or business or entity) equal to the amount of tax attributable to that
189	189	6.27portion of taxable income which is allocable or apportionable to the corporation's interest
190	190	6.28in the trade or business or entity.
191	191	6.29 (c) (d) If the amount of the credit determined under this section for any taxable year
192	192	6.30exceeds the limitation under paragraph (a) or (b) paragraphs (a) to (c), including amounts
193	193	6.31allocated to other members of the unitary group, the excess shall be a research credit
194	194	6.32carryover to each of the 15 succeeding taxable years. The entire amount of the excess unused
195	195	6Article 1 Sec. 6.
196	196	REVISOR EAP/HL 25-0010702/27/25 7.1credit for the taxable year shall be carried first to the earliest of the taxable years to which
197	197	7.2the credit may be carried and then to each successive year to which the credit may be carried.
198	198	7.3The amount of the unused credit which may be added under this clause shall not exceed the
199	199	7.4taxpayer's liability for tax less the research credit for the taxable year.
200	200	7.5 EFFECTIVE DATE.This section is effective for taxable years beginning after December
201	201	7.631, 2024.
202	202	7.7 Sec. 7. Minnesota Statutes 2024, section 290.068, is amended by adding a subdivision to
203	203	7.8read:
204	204	7.9 Subd. 6b.Credit partially refundable.(a) For an allowed credit claimed on a tax return
205	205	7.10filed on or before the due date or extended due date, if the amount of credit allowed in this
206	206	7.11section for qualified research expenses incurred in taxable years beginning after December
207	207	7.1231, 2024, exceeds the taxpayer's liability for tax, the commissioner shall refund 25 percent
208	208	7.13of the excess amount.
209	209	7.14 (b) The refundable amount allowed under paragraph (a) equals 25 percent of the excess,
210	210	7.15if any, of the credit amount remaining after the liability for tax has been reduced to zero,
211	211	7.16without any research credit carryover.
212	212	7.17 EFFECTIVE DATE.This section is effective for taxable years beginning after December
213	213	7.1831, 2024.
214	214	7.19 Sec. 8. Minnesota Statutes 2024, section 290.068, is amended by adding a subdivision to
215	215	7.20read:
216	216	7.21 Subd. 7a.Appropriation.An amount sufficient to pay the refunds required by this
217	217	7.22section is appropriated to the commissioner from the general fund.
218	218	7.23 EFFECTIVE DATE.This section is effective for taxable years beginning after December
219	219	7.2431, 2024.
220	220	7.25 Sec. 9. Minnesota Statutes 2024, section 290.068, is amended by adding a subdivision to
221	221	7.26read:
222	222	7.27 Subd. 8.Purpose statement.The purpose of the research credit provided under this
223	223	7.28section is to: (1) create or retain jobs in the state; (2) increase research activity in the state;
224	224	7.29and (3) attract or retain business in the state.
225	225	7.30 EFFECTIVE DATE.This section is effective for taxable years beginning after December
226	226	7.3131, 2024.
227	227	7Article 1 Sec. 9.
228	228	REVISOR EAP/HL 25-0010702/27/25 8.1 Sec. 10. Minnesota Statutes 2024, section 290.0695, subdivision 1, is amended to read:
229	229	8.2 Subdivision 1.Definitions.(a) For purpose purposes of this section, the following terms
230	230	8.3have the meanings given them.
231	231	8.4 (b) "Credit certificate" means the certificate issued by the commissioner of transportation
232	232	8.5under subdivision 3, paragraph (a).
233	233	8.6 (b) (c) "Eligible taxpayer" means any railroad that is classified by the United States
234	234	8.7Surface Transportation Board as a Class II or Class III railroad.
235	235	8.8 (c) (d) "Eligible transferee" means any taxpayer subject to tax under this chapter or
236	236	8.9chapter 297I.
237	237	8.10 (d) (e) "Qualified railroad reconstruction or replacement expenditures" means gross
238	238	8.11expenditures in the taxable year for maintenance, reconstruction, or replacement of railroad
239	239	8.12infrastructure, including track, roadbed, bridges, industrial leads and sidings, and track-related
240	240	8.13structures owned or leased by a Class II or Class III railroad in Minnesota as of January 1,
241	241	8.142021. Qualified railroad reconstruction or replacement expenditures also includes new
242	242	8.15construction of industrial leads, switches, spurs and sidings and extensions of existing sidings
243	243	8.16in Minnesota by a Class II or Class III railroad.
244	244	8.17 (f) "Transfer credit certificate" means the certificate issued to a transferee by the
245	245	8.18commissioner under subdivision 3, paragraph (d).
246	246	8.19 EFFECTIVE DATE.This section is effective for taxable years beginning after December
247	247	8.2031, 2024.
248	248	8.21 Sec. 11. Minnesota Statutes 2024, section 290.0695, subdivision 3, is amended to read:
249	249	8.22 Subd. 3.Transferability Credit certificates; written agreement required; credit
250	250	8.23certificate transferability.(a) To qualify for a credit under this section, an eligible taxpayer
251	251	8.24must apply to the commissioner of transportation for a credit certificate. The application
252	252	8.25for the credit certificate must be in the form and manner prescribed by the commissioner
253	253	8.26of transportation, in consultation with the commissioner. If the application is approved, the
254	254	8.27commissioner of transportation must issue the credit certificate to the eligible taxpayer
255	255	8.28within 30 days of receipt of the application. The credit certificate must state the number of
256	256	8.29miles of qualified railroad reconstruction or replacement expenditures in the taxable year
257	257	8.30and the total amount of credit calculated under subdivision 2, paragraph (a). The
258	258	8.31commissioner of transportation must provide a copy of the credit certificate to the
259	259	8.32commissioner of revenue. The commissioner of transportation must not issue more than
260	260	8.33one credit certificate to an eligible taxpayer in a taxable year.
261	261	8Article 1 Sec. 11.
262	262	REVISOR EAP/HL 25-0010702/27/25 9.1 (b) By written agreement, an eligible taxpayer may transfer the credit allowed under
263	263	9.2this section by written agreement to an eligible transferee. The amount of the transferred
264	264	9.3credit is limited to the unused, remaining portion of the credit. as follows:
265	265	9.4 (1) any amount of the credit allowed that is stated in the credit certificate before any of
266	266	9.5the credit is claimed; or
267	267	9.6 (2) the entire amount of the credit carryover in each of the five succeeding taxable years.
268	268	9.7 (b) (c) The eligible taxpayer and the eligible transferee must jointly file a copy of the
269	269	9.8written transfer agreement with the commissioner within 30 days of the transfer. The written
270	270	9.9agreement must contain the name, address, and taxpayer identification number of the parties
271	271	9.10to the transfer; the taxable year the eligible taxpayer incurred the qualified expenditures;
272	272	9.11the amount of credit being transferred; and the taxable year or years for which the transferred
273	273	9.12credit may be claimed.
274	274	9.13 (c) (d) The commissioner must issue a transfer credit certificate to the transferee within
275	275	9.1430 days of the joint filing of a copy of the written transfer agreement with the commissioner.
276	276	9.15 (d) In the case of an audit or assessment, the transferee is liable for repayment of credits
277	277	9.16claimed in excess of the allowed amount.
278	278	9.17 (e) An eligible taxpayer must not transfer a credit to an eligible transferee more than
279	279	9.18once in a taxable year.
280	280	9.19 EFFECTIVE DATE.This section is effective for taxable years beginning after December
281	281	9.2031, 2024.
282	282	9.21 Sec. 12. RESEARCH CREDIT; REPORT TO LEGISLATURE.
283	283	9.22 Subdivision 1.Report required.For taxable year 2025, the commissioner of revenue
284	284	9.23must determine the economic impact to the state from the increased research activities for
285	285	9.24which credits are provided under Minnesota Statutes, section 290.068, and provide a written
286	286	9.25report on the impact to the chairs and ranking minority members of the legislative committees
287	287	9.26with jurisdiction over taxes, in compliance with Minnesota Statutes, sections 3.195 and
288	288	9.273.197. The report must be submitted by February 1, 2027.
289	289	9.28 Subd. 2.Appropriation.$50,000 in fiscal year 2026 and $50,000 in fiscal year 2027
290	290	9.29are appropriated from the general fund to the commissioner of revenue for the costs associated
291	291	9.30with preparing the report required under subdivision 1. These are onetime appropriations.
292	292	9.31 EFFECTIVE DATE.This section is effective the day following final enactment.
293	293	9Article 1 Sec. 12.
294	294	REVISOR EAP/HL 25-0010702/27/25 10.1 Sec. 13. REPEALER.
295	295	10.2 Minnesota Statutes 2024, sections 13.4967, subdivision 2a; and 290.0679, are repealed.
296	296	10.3 EFFECTIVE DATE.This section is effective for assignments after December 31, 2025.
297	297	10.4 ARTICLE 2
298	298	10.5 PROPERTY TAXES
299	299	10.6 Section 1. Minnesota Statutes 2024, section 270.075, is amended by adding a subdivision
300	300	10.7to read:
301	301	10.8 Subd. 1a.Amount of tax.The commissioner shall levy and collect a total annual tax of
302	302	10.9$8,050,000 from all airline companies engaged in air commerce in this state. The
303	303	10.10commissioner shall apportion the tax to each airline company based on the valuation and
304	304	10.11net tax capacity of all flight property calculated pursuant to section 270.074.
305	305	10.12 EFFECTIVE DATE.This section is effective for property taxes payable in 2026 and
306	306	10.13thereafter.
307	307	10.14Sec. 2. Minnesota Statutes 2024, section 272.02, subdivision 19, is amended to read:
308	308	10.15 Subd. 19.Property used to distribute electricity to farmers.Electric power distribution
309	309	10.16lines and their attachments and appurtenances systems, not including substations, or
310	310	10.17transmission or generation equipment, that are used primarily for supplying electricity to
311	311	10.18farmers at retail, are exempt.
312	312	10.19 EFFECTIVE DATE.This section is effective beginning with assessment year 2025
313	313	10.20and thereafter.
314	314	10.21Sec. 3. Minnesota Statutes 2024, section 273.19, subdivision 1, is amended to read:
315	315	10.22 Subdivision 1.Tax-exempt property; lease.(a) Except as provided in subdivision 3 or
316	316	10.234, tax-exempt property held under a lease for a term of at least one year, and not taxable
317	317	10.24under section 272.01, subdivision 2, or under a contract for the purchase thereof, shall be
318	318	10.25considered, for all purposes of taxation, as the property of the person holding it. In this
319	319	10.26subdivision, "tax-exempt property" means property owned by the United States, the state
320	320	10.27or any of its political subdivisions, a school, or any religious, scientific, or benevolent society
321	321	10.28or institution, incorporated or unincorporated, or any corporation whose property is not
322	322	10.29taxed in the same manner as other property.
323	323	10.30 This subdivision (b) Paragraph (a) does not apply to:
324	324	10Article 2 Sec. 3.
325	325	REVISOR EAP/HL 25-0010702/27/25 11.1 (1) property exempt from taxation under section 272.01, subdivision 2, paragraph (b),
326	326	11.2clauses (2), (3), and (4), or to;
327	327	11.3 (2) property exempt from taxation under section 272.0213.; or
328	328	11.4 (3) a lease of any term of residential rental housing property exempt from taxation under
329	329	11.5section 272.02, subdivision 7.
330	330	11.6 EFFECTIVE DATE.This section is effective beginning with assessment year 2025
331	331	11.7and thereafter.
332	332	11.8 Sec. 4. Minnesota Statutes 2024, section 273.38, is amended to read:
333	333	11.9 273.38 PERCENTAGE OF ASSESSMENTS; EXCEPTIONS.
334	334	11.10 The distribution lines and the attachments and appurtenances thereto systems, not
335	335	11.11including substations, or transmission or generation equipment, of cooperative associations
336	336	11.12organized under the provisions of Laws 1923, chapter 326, and laws amendatory thereof
337	337	11.13and supplemental thereto, and engaged in the electrical heat, light and power business, upon
338	338	11.14a mutual, nonprofit and cooperative plan, shall be assessed and taxed as provided in sections
339	339	11.15273.40 and 273.41.
340	340	11.16 EFFECTIVE DATE.This section is effective beginning with assessment year 2025
341	341	11.17and thereafter.
342	342	11.18Sec. 5. Minnesota Statutes 2024, section 273.41, is amended to read:
343	343	11.19 273.41 AMOUNT OF TAX; DISTRIBUTION.
344	344	11.20 There is hereby imposed upon each such cooperative association on December 31 of
345	345	11.21each year a tax of $10 for each 100 members, or fraction thereof, of such association. The
346	346	11.22tax, when paid, shall be in lieu of all personal property taxes, state, county, or local, upon
347	347	11.23distribution lines and the attachments and appurtenances thereto of such associations that
348	348	11.24part of the association's distribution system, not including substations, or transmission or
349	349	11.25generation equipment, located in rural areas. The tax shall be payable on or before March
350	350	11.261 of the next succeeding year, to the commissioner of revenue. If the tax, or any portion
351	351	11.27thereof, is not paid within the time herein specified for the payment thereof, there shall be
352	352	11.28added thereto a specific penalty equal to ten percent of the amount so remaining unpaid.
353	353	11.29Such penalty shall be collected as part of said tax, and the amount of said tax not timely
354	354	11.30paid, together with said penalty, shall bear interest at the rate specified in section 270C.40
355	355	11.31from the time such tax should have been paid until paid. The commissioner shall deposit
356	356	11.32the amount so received in the general fund of the state treasury.
357	357	11Article 2 Sec. 5.
358	358	REVISOR EAP/HL 25-0010702/27/25 12.1 EFFECTIVE DATE.This section is effective beginning with assessment year 2025
359	359	12.2and thereafter.
360	360	12.3 Sec. 6. Minnesota Statutes 2024, section 477A.19, subdivision 5, is amended to read:
361	361	12.4 Subd. 5.Appropriation.$10,000,000 $5,000,000 each year is appropriated from the
362	362	12.5general fund to the commissioner of revenue to make the payments required under this
363	363	12.6section.
364	364	12.7 EFFECTIVE DATE.This section is effective for aids payable in 2026 and thereafter.
365	365	12.8 Sec. 7. REPEALER.
366	366	12.9 Minnesota Statutes 2024, section 270.075, subdivision 1, is repealed.
367	367	12.10 EFFECTIVE DATE.This section is effective for property taxes payable in 2026 and
368	368	12.11thereafter.
369	369	12.12 ARTICLE 3
370	370	12.13 SALES AND USE TAXES
371	371	12.14Section 1. Minnesota Statutes 2024, section 297A.61, subdivision 3, is amended to read:
372	372	12.15 Subd. 3.Sale and purchase.(a) "Sale" and "purchase" include, but are not limited to,
373	373	12.16each of the transactions listed in this subdivision. In applying the provisions of this chapter,
374	374	12.17the terms "tangible personal property" and "retail sale" include the taxable services listed
375	375	12.18in paragraph (g), clause (6), items (i) to (vi) and (viii), and the provision of these taxable
376	376	12.19services, unless specifically provided otherwise. Services performed by an employee for
377	377	12.20an employer are not taxable. Services performed by a partnership or association for another
378	378	12.21partnership or association are not taxable if one of the entities owns or controls more than
379	379	12.2280 percent of the voting power of the equity interest in the other entity. Services performed
380	380	12.23between members of an affiliated group of corporations are not taxable. For purposes of
381	381	12.24the preceding sentence, "affiliated group of corporations" means those entities that would
382	382	12.25be classified as members of an affiliated group as defined under United States Code, title
383	383	12.2626, section 1504, disregarding the exclusions in section 1504(b).
384	384	12.27 (b) Sale and purchase include:
385	385	12.28 (1) any transfer of title or possession, or both, of tangible personal property, whether
386	386	12.29absolutely or conditionally, for a consideration in money or by exchange or barter; and
387	387	12Article 3 Section 1.
388	388	REVISOR EAP/HL 25-0010702/27/25 13.1 (2) the leasing of or the granting of a license to use or consume, for a consideration in
389	389	13.2money or by exchange or barter, tangible personal property, other than a manufactured
390	390	13.3home used for residential purposes for a continuous period of 30 days or more.
391	391	13.4 (c) Sale and purchase include the production, fabrication, printing, or processing of
392	392	13.5tangible personal property for a consideration for consumers who furnish either directly or
393	393	13.6indirectly the materials used in the production, fabrication, printing, or processing.
394	394	13.7 (d) Sale and purchase include the preparing for a consideration of food. Notwithstanding
395	395	13.8section 297A.67, subdivision 2, taxable food includes, but is not limited to, the following:
396	396	13.9 (1) prepared food sold by the retailer;
397	397	13.10 (2) soft drinks;
398	398	13.11 (3) candy; and
399	399	13.12 (4) dietary supplements.
400	400	13.13 (e) A sale and a purchase includes the furnishing for a consideration of electricity, gas,
401	401	13.14water, or steam for use or consumption within this state.
402	402	13.15 (f) A sale and a purchase includes the transfer for a consideration of prewritten computer
403	403	13.16software whether delivered electronically, by load and leave, or otherwise.
404	404	13.17 (g) A sale and a purchase includes the furnishing for a consideration of the following
405	405	13.18services:
406	406	13.19 (1) the privilege of admission to places of amusement, recreational areas, or athletic
407	407	13.20events, and the making available of amusement devices, tanning facilities, reducing salons,
408	408	13.21steam baths, health clubs, and spas or athletic facilities;
409	409	13.22 (2) lodging and related services by a hotel, rooming house, resort, campground, motel,
410	410	13.23or trailer camp, including furnishing the guest of the facility with access to telecommunication
411	411	13.24services, and the granting of any similar license to use real property in a specific facility,
412	412	13.25other than the renting or leasing of it for a continuous period of 30 days or more under an
413	413	13.26enforceable written agreement that may not be terminated without prior notice and including
414	414	13.27accommodations intermediary services provided in connection with other services provided
415	415	13.28under this clause;
416	416	13.29 (3) nonresidential parking services, whether on a contractual, hourly, or other periodic
417	417	13.30basis, except for parking at a meter;
418	418	13.31 (4) the granting of membership in a club, association, or other organization if:
419	419	13Article 3 Section 1.
420	420	REVISOR EAP/HL 25-0010702/27/25 14.1 (i) the club, association, or other organization makes available for the use of its members
421	421	14.2sports and athletic facilities, without regard to whether a separate charge is assessed for use
422	422	14.3of the facilities; and
423	423	14.4 (ii) use of the sports and athletic facility is not made available to the general public on
424	424	14.5the same basis as it is made available to members.
425	425	14.6Granting of membership means both onetime initiation fees and periodic membership dues.
426	426	14.7Sports and athletic facilities include golf courses; tennis, racquetball, handball, and squash
427	427	14.8courts; basketball and volleyball facilities; running tracks; exercise equipment; swimming
428	428	14.9pools; and other similar athletic or sports facilities;
429	429	14.10 (5) delivery of aggregate materials by a third party, excluding delivery of aggregate
430	430	14.11material used in road construction; and delivery of concrete block by a third party if the
431	431	14.12delivery would be subject to the sales tax if provided by the seller of the concrete block.
432	432	14.13For purposes of this clause, "road construction" means construction of:
433	433	14.14 (i) public roads;
434	434	14.15 (ii) cartways; and
435	435	14.16 (iii) private roads in townships located outside of the seven-county metropolitan area
436	436	14.17up to the point of the emergency response location sign; and
437	437	14.18 (6) services as provided in this clause:
438	438	14.19 (i) laundry and dry cleaning services including cleaning, pressing, repairing, altering,
439	439	14.20and storing clothes, linen services and supply, cleaning and blocking hats, and carpet,
440	440	14.21drapery, upholstery, and industrial cleaning. Laundry and dry cleaning services do not
441	441	14.22include services provided by coin operated facilities operated by the customer;
442	442	14.23 (ii) motor vehicle washing, waxing, and cleaning services, including services provided
443	443	14.24by coin operated facilities operated by the customer, and rustproofing, undercoating, and
444	444	14.25towing of motor vehicles;
445	445	14.26 (iii) building and residential cleaning, maintenance, and disinfecting services and pest
446	446	14.27control and exterminating services;
447	447	14.28 (iv) detective, security, burglar, fire alarm, and armored car services; but not including
448	448	14.29services performed within the jurisdiction they serve by off-duty licensed peace officers as
449	449	14.30defined in section 626.84, subdivision 1, or services provided by a nonprofit organization
450	450	14.31or any organization at the direction of a county for monitoring and electronic surveillance
451	451	14Article 3 Section 1.
452	452	REVISOR EAP/HL 25-0010702/27/25 15.1of persons placed on in-home detention pursuant to court order or under the direction of the
453	453	15.2Minnesota Department of Corrections;
454	454	15.3 (v) pet grooming services;
455	455	15.4 (vi) lawn care, fertilizing, mowing, spraying and sprigging services; garden planting
456	456	15.5and maintenance; tree, bush, and shrub pruning, bracing, spraying, and surgery; indoor plant
457	457	15.6care; tree, bush, shrub, and stump removal, except when performed as part of a land clearing
458	458	15.7contract as defined in section 297A.68, subdivision 40; and tree trimming for public utility
459	459	15.8lines. Services performed under a construction contract for the installation of shrubbery,
460	460	15.9plants, sod, trees, bushes, and similar items are not taxable;
461	461	15.10 (vii) massages, except when provided by a licensed health care facility or professional
462	462	15.11or upon written referral from a licensed health care facility or professional for treatment of
463	463	15.12illness, injury, or disease; and
464	464	15.13 (viii) the furnishing of lodging, board, and care services for animals in kennels and other
465	465	15.14similar arrangements, but excluding veterinary and horse boarding services.
466	466	15.15 (h) A sale and a purchase includes the furnishing for a consideration of tangible personal
467	467	15.16property or taxable services by the United States or any of its agencies or instrumentalities,
468	468	15.17or the state of Minnesota, its agencies, instrumentalities, or political subdivisions.
469	469	15.18 (i) A sale and a purchase includes the furnishing for a consideration of
470	470	15.19telecommunications services, ancillary services associated with telecommunication services,
471	471	15.20and pay television services. Telecommunication services include, but are not limited to, the
472	472	15.21following services, as defined in section 297A.669: air-to-ground radiotelephone service,
473	473	15.22mobile telecommunication service, postpaid calling service, prepaid calling service, prepaid
474	474	15.23wireless calling service, and private communication services. The services in this paragraph
475	475	15.24are taxed to the extent allowed under federal law.
476	476	15.25 (j) A sale and a purchase includes the furnishing for a consideration of installation if the
477	477	15.26installation charges would be subject to the sales tax if the installation were provided by
478	478	15.27the seller of the item being installed.
479	479	15.28 (k) A sale and a purchase includes the rental of a vehicle by a motor vehicle dealer to a
480	480	15.29customer when (1) the vehicle is rented by the customer for a consideration, or (2) the motor
481	481	15.30vehicle dealer is reimbursed pursuant to a service contract as defined in section 59B.02,
482	482	15.31subdivision 11.
483	483	15.32 (l) A sale and a purchase includes furnishing for a consideration of specified digital
484	484	15.33products or other digital products or granting the right for a consideration to use specified
485	485	15Article 3 Section 1.
486	486	REVISOR EAP/HL 25-0010702/27/25 16.1digital products or other digital products on a temporary or permanent basis and regardless
487	487	16.2of whether the purchaser is required to make continued payments for such right. Wherever
488	488	16.3the term "tangible personal property" is used in this chapter, other than in subdivisions 10
489	489	16.4and 38, the provisions also apply to specified digital products, or other digital products,
490	490	16.5unless specifically provided otherwise or the context indicates otherwise.
491	491	16.6 (m) The sale of the privilege of admission under section 297A.61, subdivision 3,
492	492	16.7paragraph (g), clause (1), to a place of amusement, recreational area, or athletic event
493	493	16.8includes all charges included in the privilege of admission's sales price, without deduction
494	494	16.9for amenities that may be provided, unless the amenities are separately stated and the
495	495	16.10purchaser of the privilege of admission is entitled to add or decline the amenities, and the
496	496	16.11amenities are not otherwise taxable.
497	497	16.12 (n) A sale and purchase includes the transfer for consideration of a taxable cannabis
498	498	16.13product as defined in section 295.81, subdivision 1, paragraph (r).
499	499	16.14 (o) A sale and purchase includes the furnishing for a consideration of the following
500	500	16.15services when purchased by a person other than a trade or business:
501	501	16.16 (1) accounting services, including but not limited to audit, bookkeeping, financial
502	502	16.17statement preparation, payroll, and tax return preparation services, but excluding tax
503	503	16.18preparation services used to claim the Minnesota child tax credit under section 290.0661
504	504	16.19or the Minnesota working family credit under section 290.0671;
505	505	16.20 (2) banking and brokerage services, including but not limited to account maintenance
506	506	16.21fees, safety deposit boxes, credit card fees, loan servicing, payment services, wealth
507	507	16.22management, financial planning, retirement planning, trust management, and investment
508	508	16.23management, but excluding origination fees, overdraft fees, late fees, and the management
509	509	16.24of defined benefit pension funds; and
510	510	16.25 (3) legal services, including but not limited to attorney fees, paralegal and legal assistant
511	511	16.26services, law clerk services, notary fees, process serving, mediation and arbitration, and
512	512	16.27title search, but excluding legal aid services funded as described in section 480.242.
513	513	16.28 (p) A seller of the services listed in paragraph (o) must retain records identifying through
514	514	16.29reasonable and verifiable standards whether the services were purchased by a trade or
515	515	16.30business or a person other than a trade or business.
516	516	16.31 EFFECTIVE DATE.This section is effective for sales and purchases made after
517	517	16.32September 30, 2025.
518	518	16Article 3 Section 1.
519	519	REVISOR EAP/HL 25-0010702/27/25 17.1 Sec. 2. Minnesota Statutes 2024, section 297A.62, subdivision 1, is amended to read:
520	520	17.2 Subdivision 1.Generally.Except as otherwise provided in subdivision 3 or in this
521	521	17.3chapter, a sales tax of 6.5 6.425 percent is imposed on the gross receipts from retail sales
522	522	17.4as defined in section 297A.61, subdivision 4, made in this state or to a destination in this
523	523	17.5state by a person who is required to have or voluntarily obtains a permit under section
524	524	17.6297A.83, subdivision 1.
525	525	17.7 EFFECTIVE DATE.This section is effective for sales and purchases made after
526	526	17.8September 30, 2025.
527	527	17.9 Sec. 3. Minnesota Statutes 2024, section 297A.65, is amended to read:
528	528	17.10 297A.65 LOTTERY TICKETS; IN LIEU TAX.
529	529	17.11 Sales of State Lottery tickets are exempt from the tax imposed under section 297A.62.
530	530	17.12The State Lottery must on or before the 20th day of each month transmit to the commissioner
531	531	17.13of revenue an amount equal to the gross receipts from the sale of lottery tickets for the
532	532	17.14previous month multiplied by the tax rate under section 297A.62, subdivision 1 6.5 percent.
533	533	17.15The resulting payment is in lieu of the sales tax that otherwise would be imposed by this
534	534	17.16chapter. The commissioner shall deposit the money transmitted as provided by section
535	535	17.17297A.94 and the money must be treated as other proceeds of the sales tax. For purposes of
536	536	17.18this section, "gross receipts" means the proceeds of the sale of tickets before deduction of
537	537	17.19a commission or other compensation paid to the vendor or retailer for selling tickets.
538	538	17.20 EFFECTIVE DATE.This section is effective for sales and purchases made after
539	539	17.21September 30, 2025.
540	540	17.22Sec. 4. Minnesota Statutes 2024, section 297F.25, subdivision 1, is amended to read:
541	541	17.23 Subdivision 1.Imposition.(a) A tax is imposed on distributors on the sale of cigarettes
542	542	17.24by a cigarette distributor to a retailer or cigarette subjobber for resale in this state. The tax
543	543	17.25is equal to the combined tax rate under section 297A.62 6.875 percent, multiplied by the
544	544	17.26weighted average retail price and must be expressed in cents per pack rounded to the nearest
545	545	17.27one-tenth of a cent. The weighted average retail price must be determined annually, with
546	546	17.28new rates published by November 1, and effective for sales on or after January 1 of the
547	547	17.29following year. The weighted average retail price must be established by surveying cigarette
548	548	17.30retailers statewide in a manner and time determined by the commissioner. The commissioner
549	549	17.31shall make an inflation adjustment in accordance with the Consumer Price Index for all
550	550	17.32urban consumers inflation indicator as published in the most recent state budget forecast.
551	551	17Article 3 Sec. 4.
552	552	REVISOR EAP/HL 25-0010702/27/25 18.1The commissioner shall use the inflation factor for the calendar year in which the new tax
553	553	18.2rate takes effect. If the survey indicates that the average retail price of cigarettes has not
554	554	18.3increased relative to the average retail price in the previous year's survey, then the
555	555	18.4commissioner shall not make an inflation adjustment. The determination of the commissioner
556	556	18.5pursuant to this subdivision is not a "rule" and is not subject to the Administrative Procedure
557	557	18.6Act contained in chapter 14. For packs of cigarettes with other than 20 cigarettes, the tax
558	558	18.7must be adjusted proportionally.
559	559	18.8 (b) Notwithstanding paragraph (a), and in lieu of a survey of cigarette retailers, the tax
560	560	18.9calculation of the weighted average retail price for the sales of cigarettes from August 1,
561	561	18.102011, through December 31, 2011, shall be calculated by: (1) increasing the average retail
562	562	18.11price per pack of 20 cigarettes from the most recent survey by the percentage change in a
563	563	18.12weighted average of the presumed legal prices for cigarettes during the year after completion
564	564	18.13of that survey, as reported and published by the Department of Commerce under section
565	565	18.14325D.371; (2) subtracting the sales tax included in the retail price; and (3) adjusting for
566	566	18.15expected inflation. The rate must be published by May 1 and is effective for sales after July
567	567	18.1631. If the weighted average of the presumed legal prices indicates that the average retail
568	568	18.17price of cigarettes has not increased relative to the average retail price in the most recent
569	569	18.18survey, then no inflation adjustment must be made. For packs of cigarettes with other than
570	570	18.1920 cigarettes, the tax must be adjusted proportionally.
571	571	18.20 EFFECTIVE DATE.This section is effective for sales and purchases made after
572	572	18.21September 30, 2025.
573	573	18.22 ARTICLE 4
574	574	18.23 MISCELLANEOUS
575	575	18.24Section 1. Minnesota Statutes 2024, section 289A.60, subdivision 12, is amended to read:
576	576	18.25 Subd. 12.Penalties relating to property tax refunds and certificates of rent paid.(a)
577	577	18.26If it is determined that a property tax refund claim is excessive and was negligently prepared,
578	578	18.27a claimant is liable for a penalty of ten percent of the disallowed claim. If the claim has
579	579	18.28been paid, the amount disallowed must be recovered by assessment and collection.
580	580	18.29 (b) An owner who without reasonable cause fails to give a certificate of rent paid to a
581	581	18.30renter, as required by sections 290.0693, subdivision 4, paragraph (a), and 290A.19,
582	582	18.31paragraph (a), is liable to the commissioner for a penalty of $100 $50 for each failure. The
583	583	18.32commissioner may abate the penalty using the abatement authority in section 270C.34.
584	584	18Article 4 Section 1.
585	585	REVISOR EAP/HL 25-0010702/27/25 19.1 (c) An owner who fails to file a certificate of rent paid with the commissioner, as required
586	586	19.2by sections 290.0693, subdivision 4, paragraph (b), and 290A.19, paragraph (b), is liable
587	587	19.3to the commissioner for a penalty of $50 for each failure. The commissioner may abate the
588	588	19.4penalty using the abatement authority in section 270C.34.
589	589	19.5 (c) (d) If the owner or managing agent knowingly gives rent certificates that report total
590	590	19.6rent constituting property taxes in excess of the amount of actual rent constituting property
591	591	19.7taxes paid on the rented part of a property, the owner or managing agent is liable for a
592	592	19.8penalty equal to the greater of (1) $100 or (2) 50 percent of the excess that is reported. An
593	593	19.9overstatement of rent constituting property taxes is presumed to be knowingly made if it
594	594	19.10exceeds by ten percent or more the actual rent constituting property taxes.
595	595	19.11 EFFECTIVE DATE.This section is effective for rent paid after December 31, 2025.
596	596	19.12Sec. 2. Minnesota Statutes 2024, section 290.0693, subdivision 4, is amended to read:
597	597	19.13 Subd. 4.Owner or managing agent to furnish rent certificate.(a) The owner or
598	598	19.14managing agent of any property for which rent is paid for occupancy as a homestead must
599	599	19.15furnish a certificate of rent paid to a person who is a renter on December 31, in the form
600	600	19.16prescribed by the commissioner. If the renter moves before December 31, the owner or
601	601	19.17managing agent may give the certificate to the renter at the time of moving, or mail the
602	602	19.18certificate to the forwarding address if an address has been provided by the renter. The
603	603	19.19certificate must be made available to the renter before February 1 of the year following the
604	604	19.20year in which the rent was paid. The owner or managing agent must retain a duplicate of
605	605	19.21each certificate or an equivalent record showing the same information for a period of four
606	606	19.22years. The duplicate or other record must be made available to the commissioner upon
607	607	19.23request.
608	608	19.24 (b) The commissioner may require the owner or managing agent, through a simple
609	609	19.25process, to must furnish to the commissioner on or before January 31 a copy of each
610	610	19.26certificate of rent paid furnished to a renter for rent paid in the prior year. The commissioner
611	611	19.27shall prescribe the content, format, and manner of the form pursuant to section 270C.30.
612	612	19.28The commissioner may require the Social Security number, individual taxpayer identification
613	613	19.29number, federal employer identification number, or Minnesota taxpayer identification
614	614	19.30number of the owner or managing agent who is required to furnish a certificate of rent paid
615	615	19.31under this paragraph. Before implementation, the commissioner, after consulting with
616	616	19.32representatives of owners or managing agents, shall develop an implementation and
617	617	19.33administration plan for the requirements of this paragraph that attempts to minimize financial
618	618	19Article 4 Sec. 2.
619	619	REVISOR EAP/HL 25-0010702/27/25 20.1burdens, administration and compliance costs, and takes into consideration existing systems
620	620	20.2of owners and managing agents.
621	621	20.3 (c) An owner who fails to furnish the certificate of rent paid to the renter or to the
622	622	20.4commissioner, as required under this section, is subject to the penalty imposed under section
623	623	20.5289A.60, subdivision 12.
624	624	20.6 EFFECTIVE DATE.This section is effective for rent paid after December 31, 2025.
625	625	20.7 Sec. 3. Minnesota Statutes 2024, section 290A.19, is amended to read:
626	626	20.8 290A.19 PARK OWNER TO FURNISH RENT CERTIFICATE.
627	627	20.9 (a) The park owner of a property for which rent is paid for occupancy as a homestead
628	628	20.10must furnish a certificate of rent paid to a person who is a renter on December 31, in the
629	629	20.11form prescribed by the commissioner. If the renter moves before December 31, the park
630	630	20.12owner may give the certificate to the renter at the time of moving, or mail the certificate to
631	631	20.13the forwarding address if an address has been provided by the renter. The certificate must
632	632	20.14be made available to the renter before February 1 of the year following the year in which
633	633	20.15the rent was paid. The park owner must retain a duplicate of each certificate or an equivalent
634	634	20.16record showing the same information for a period of three years. The duplicate or other
635	635	20.17record must be made available to the commissioner upon request.
636	636	20.18 (b) The commissioner may require the park owner, through a simple process, to must
637	637	20.19furnish to the commissioner on or before March 1 a copy of each certificate of rent paid
638	638	20.20furnished to a renter for rent paid in the prior year. The commissioner shall prescribe the
639	639	20.21content, format, and manner of the form pursuant to section 270C.30. The commissioner
640	640	20.22may require the Social Security number, individual taxpayer identification number, federal
641	641	20.23employer identification number, or Minnesota taxpayer identification number of the park
642	642	20.24owner who is required to furnish a certificate of rent paid under this paragraph. Prior to
643	643	20.25implementation, the commissioner, after consulting with representatives of park owners,
644	644	20.26shall develop an implementation and administration plan for the requirements of this
645	645	20.27paragraph that attempts to minimize financial burdens, administration and compliance costs,
646	646	20.28and takes into consideration existing systems of park owners.
647	647	20.29 (c) For the purposes of this section, "park owner" means a park owner as defined under
648	648	20.30section 327C.015, subdivision 9, and "property" includes a lot as defined under section
649	649	20.31327C.015, subdivision 6.
650	650	20Article 4 Sec. 3.
651	651	REVISOR EAP/HL 25-0010702/27/25 21.1 (d) An owner who fails to furnish the certificate of rent paid to the renter or to the
652	652	21.2commissioner, as required under this section, is subject to the penalty imposed under section
653	653	21.3289A.60, subdivision 12.
654	654	21.4 EFFECTIVE DATE.This section is effective for rent paid after December 31, 2025.
655	655	21.5 Sec. 4. Minnesota Statutes 2024, section 290C.07, is amended to read:
656	656	21.6 290C.07 CALCULATION OF INCENTIVE PAYMENT.
657	657	21.7 (a) An approved claimant under the sustainable forest incentive program is eligible to
658	658	21.8receive an annual payment for each acre of enrolled land, excluding any acre improved with
659	659	21.9a paved trail under easement, lease, or terminable license to the state of Minnesota or a
660	660	21.10political subdivision. The payment shall equal a percentage of the property tax that would
661	661	21.11be paid on the land determined by using the previous year's statewide average total tax rate
662	662	21.12for all taxes levied within townships and unorganized territories, the estimated market value
663	663	21.13per acre as calculated in section 290C.06, and a class rate of one percent as follows: (1) for
664	664	21.14claimants enrolling land that is subject to a conservation easement funded under section
665	665	21.1597A.056 or a comparable permanent easement conveyed to a governmental or nonprofit
666	666	21.16entity before May 31, 2013, 25 17.5 percent; (2) for claimants enrolling land that is not
667	667	21.17subject to a conservation easement under an eight-year covenant, 65 45.5 percent; (3) for
668	668	21.18claimants enrolling land that is not subject to a conservation easement under a 20-year
669	669	21.19covenant, 90 63 percent; and (4) for claimants enrolling land that is not subject to a
670	670	21.20conservation easement under a 50-year covenant, 115 80.5 percent.
671	671	21.21 (b) The calculated payment must not increase or decrease by more than ten percent
672	672	21.22relative to the payment received for the previous year. In no case may the payment be less
673	673	21.23than 70 percent of the amount paid to the claimant for the land enrolled in the program in
674	674	21.242017. If an eligible claimant elects to change the length of the covenant on enrolled land
675	675	21.25on or before May 15, 2019, the limits under this paragraph do not apply and the claimant
676	676	21.26must receive payment in the amount corresponding to the new covenant length as calculated
677	677	21.27under paragraph (a).
678	678	21.28 (c) In addition to the payments provided under this section, a claimant enrolling more
679	679	21.29than 1,920 acres shall be allowed an additional payment per acre equal to the amount
680	680	21.30prescribed in paragraph (a), clause (1), for all acres of enrolled land on which public access
681	681	21.31is allowed, as required under section 290C.03, paragraph (a), clause (6), excluding any land
682	682	21.32subject to a conservation easement funded under section 97A.056, or a permanent easement
683	683	21.33conveyed to a governmental or nonprofit entity that is required to allow for public access
684	684	21.34under section 290C.03, paragraph (a), clause (6).
685	685	21Article 4 Sec. 4.
686	686	REVISOR EAP/HL 25-0010702/27/25 22.1 EFFECTIVE DATE.This section is effective beginning for payments in calendar year
687	687	22.22026.
688	688	22.3 Sec. 5. Minnesota Statutes 2024, section 295.81, subdivision 10, is amended to read:
689	689	22.4 Subd. 10.Deposit of revenues; account established.(a) The commissioner must deposit
690	690	22.5the revenues, including penalties and interest, derived from the tax imposed by this section
691	691	22.6as follows:
692	692	22.7 (1) 80 percent to in the general fund; and.
693	693	22.8 (2) 20 percent to the local government cannabis aid account in the special revenue fund.
694	694	22.9 (b) The local government cannabis aid account is established in the special revenue fund.
695	695	22.10 EFFECTIVE DATE.The amendment to paragraph (a) is effective July 1, 2025. The
696	696	22.11amendment to paragraph (b) is effective January 2, 2026.
697	697	22.12Sec. 6. CANCELLATION OF AMOUNTS IN LOCAL GOVERNMENT CANNABIS
698	698	22.13AID ACCOUNT.
699	699	22.14 On January 2, 2026, any balance within the local government cannabis aid account in
700	700	22.15the special revenue fund is canceled to the general fund.
701	701	22.16 EFFECTIVE DATE.This section is effective the day following final enactment.
702	702	22.17Sec. 7. SPECIAL WITHDRAWAL AND RELEASE PROCEDURES FOR THE
703	703	22.18SUSTAINABLE FOREST INCENTIVE ACT.
704	704	22.19 For lands enrolled in the Sustainable Forest Incentive Act on or before the day following
705	705	22.20final enactment of section 4, the claimant may elect by July 1, 2026, and without penalty,
706	706	22.21to withdraw land subject to the covenant without regard to the limitations under Minnesota
707	707	22.22Statutes, section 290C.055. The claimant of the enrolled land making an election to withdraw
708	708	22.23land must provide written notice to the commissioner of revenue of its intent to withdraw
709	709	22.24land from the program. The commissioner must issue a document releasing the land from
710	710	22.25the covenant to each claimant electing to withdraw land from the program, effective
711	711	22.26retroactive to the date of the election.
712	712	22.27 EFFECTIVE DATE.This section is effective the day following final enactment.
713	713	22Article 4 Sec. 7.
714	714	REVISOR EAP/HL 25-0010702/27/25 23.1 Sec. 8. CANCELLATION.
715	715	23.2 Any money in the tax filing modernization account repealed in section 9 is canceled to
716	716	23.3the general fund.
717	717	23.4 EFFECTIVE DATE.This section is effective the day following final enactment.
718	718	23.5 Sec. 9. REPEALER.
719	719	23.6 (a) Minnesota Statutes 2024, section 477A.32, is repealed.
720	720	23.7 (b) Laws 2023, chapter 64, article 15, section 24, is repealed.
721	721	23.8 EFFECTIVE DATE.Paragraph (a) is effective for aids payable in 2026 and thereafter.
722	722	23.9Paragraph (b) is effective the day following final enactment.
723	723	23Article 4 Sec. 9.
724	724	REVISOR EAP/HL 25-0010702/27/25 Page.Ln 1.25INDIVIDUAL INCOME AND CORPORATE FRANCHISE TAXES..ARTICLE 1
725	725	Page.Ln 10.4PROPERTY TAXES..............................................................................ARTICLE 2
726	726	Page.Ln 12.12SALES AND USE TAXES....................................................................ARTICLE 3
727	727	Page.Ln 18.22MISCELLANEOUS...............................................................................ARTICLE 4
728	728	1
729	729	APPENDIX
730	730	Article locations for 25-00107 13.4967 OTHER TAX DATA CODED ELSEWHERE.
731	731	Subd. 2a.Assignment of refund.Data regarding assignment of individual income tax refunds
732	732	is classified by section 290.0679, subdivision 9.
733	733	270.075 TAX LEVY.
734	734	Subdivision 1.Rate of tax.The commissioner shall determine the rate of tax to be levied and
735	735	collected against the net tax capacity as determined pursuant to section 270.074, subdivision 3, to
736	736	generate revenues sufficient to fund the air flight property tax portion of each year's state airport
737	737	fund appropriation, as certified to the commissioner by the commissioner of transportation. The
738	738	certification shall be presented to the commissioner prior to December 31 of each year. The property
739	739	tax portion of the state airport fund appropriation is the difference between the total fund
740	740	appropriation and the estimated total fund revenues from other sources for the state fiscal year in
741	741	which the tax is payable and may include a portion of the balance in the state airports fund as
742	742	determined to be available by the commissioner of transportation. The certification by the
743	743	commissioner of transportation to the commissioner shall state the total fund appropriation and
744	744	shall list individually the estimated fund revenues including the account carryover balance in the
745	745	airport fund. The difference of these amounts shall be shown as the property tax portion of the state
746	746	airport fund appropriation.
747	747	If a levy amount has not been certified by December 31 of a levy year, the commissioner shall
748	748	use the last previous certified amount to determine the rate of tax, and shall notify the chairs and
749	749	the ranking minority members of the committees of the house of representatives and senate having
750	750	jurisdiction over the Department of Transportation that a certification was not made under this
751	751	subdivision.
752	752	290.0679 ASSIGNMENT OF REFUND.
753	753	Subdivision 1.Definitions.(a) "Qualifying taxpayer" means a resident who has a child in
754	754	kindergarten through grade 12 in the current tax year and who met the income requirements under
755	755	section 290.0674, subdivision 2, for receiving the education credit in the tax year preceding the
756	756	assignment of the taxpayer's refund.
757	757	(b) "Education credit" means the credit allowed under section 290.0674.
758	758	(c) "Refund" means an individual income tax refund.
759	759	(d) "Financial institution" means a state or federally chartered bank, savings bank, savings
760	760	association, or credit union.
761	761	(e) "Qualifying organization" means a tax-exempt organization under section 501(c)(3) of the
762	762	Internal Revenue Code.
763	763	(f) "Assignee" means a financial institution or qualifying organization that is entitled to receive
764	764	payment of a refund assigned under this section.
765	765	Subd. 2.Conditions for assignment.A qualifying taxpayer may assign all or part of an
766	766	anticipated refund for the current and future taxable years to a financial institution or a qualifying
767	767	organization. A financial institution or qualifying organization accepting assignment must pay the
768	768	amount secured by the assignment to a third-party vendor. The commissioner of education shall,
769	769	upon request from a third-party vendor, certify that the vendor's products and services qualify for
770	770	the education credit. A denial of a certification may be appealed to the commissioner pursuant to
771	771	this subdivision and notwithstanding chapter 14. A financial institution or qualifying organization
772	772	that accepts assignments under this section must verify as part of the assignment documentation
773	773	that the product or service to be provided by the third-party vendor has been certified by the
774	774	commissioner of education as qualifying for the education credit. The amount assigned for the
775	775	current and future taxable years may not exceed the maximum allowable education credit for the
776	776	current taxable year. Both the taxpayer and spouse must consent to the assignment of a refund from
777	777	a joint return.
778	778	Subd. 3.Consent for disclosure.When the taxpayer applies to the financial institution or the
779	779	qualifying organization for a loan to be secured by the assignment under subdivision 2, the taxpayer
780	780	must sign a written consent on a form prescribed by the commissioner. The consent must authorize
781	781	the commissioner to disclose to the financial institution or qualifying organization the total amount
782	782	of state taxes owed or revenue recapture claims filed under chapter 270A against the taxpayer, and
783	783	the total amount of outstanding assignments made by the taxpayer under this section. For a refund
784	784	from a joint return, the consent must also authorize the disclosure of taxes, revenue recapture claims,
785	785	and assignments relating to the taxpayer's spouse, and must be signed by the spouse. The financial
786	786	1R
787	787	APPENDIX
788	788	Repealed Minnesota Statutes: 25-00107 institution or qualifying organization may request that the taxpayer provide a copy of the taxpayer's
789	789	previous year's income tax return, if any, and may assist the taxpayer in requesting a copy of the
790	790	previous year's return from the commissioner.
791	791	Subd. 4.Consumer disclosure.(a) A third-party vendor that receives payment of the amount
792	792	secured by an assignment must comply with the requirements of this subdivision.
793	793	(b) The third-party vendor must disclose to the taxpayer, in plain language:
794	794	(1) the cost of each product or service for which the third-party vendor separately charges the
795	795	taxpayer;
796	796	(2) any fees charged to the taxpayer for tax preparation services; and
797	797	(3) for qualifying low-income taxpayers, information on the availability of free tax preparation
798	798	services.
799	799	(c) The third-party vendor must provide to the taxpayer executed copies of any documents
800	800	signed by the taxpayer.
801	801	Subd. 5.Filing of assignment.The commissioner shall prescribe the form of and manner for
802	802	filing an assignment of a refund under this section.
803	803	Subd. 6.Effect of assignment.The taxpayer may not revoke an assignment after it has been
804	804	filed. The assignee must notify the commissioner if the loan secured by the assignment has been
805	805	paid in full, in which case the assignment is canceled. An assignment is in effect until the amount
806	806	assigned is refunded in full to the assignee, or until the assignee cancels the assignment.
807	807	Subd. 7.Payment of refund.When a refund assigned under this section is issued by the
808	808	commissioner, the proceeds of the refund, as defined in subdivision 1, paragraph (c), must be
809	809	distributed in the following order:
810	810	(1) to satisfy any delinquent tax obligations of the taxpayer which are owed to the commissioner;
811	811	(2) to claimant agencies to satisfy any revenue recapture claims filed against the taxpayer, in
812	812	the order of priority of the claims set forth in section 270A.10;
813	813	(3) to assignees to satisfy assignments under this section, based on the order in time in which
814	814	the commissioner received the assignments; and
815	815	(4) to the taxpayer.
816	816	Subd. 8.Legal action.If there is a dispute between the taxpayer and the assignee after the
817	817	commissioner has remitted the taxpayer's refund to the assignee, the taxpayer's only remedy is to
818	818	bring an action against the assignee in court to recover the refund. The action must be brought
819	819	within two years after the commissioner remits the refund to the assignee. The commissioner may
820	820	not be a party to the proceeding.
821	821	Subd. 9.Assignments private data.Information regarding assignments under this section is
822	822	classified as private data on individuals.
823	823	477A.32 LOCAL GOVERNMENT CANNABIS AID.
824	824	Subdivision 1.Definitions.For purposes of this section, the following terms have the meanings
825	825	given:
826	826	(1) "city" means a statutory or home rule charter city; and
827	827	(2) "director" means the director of the Office of Cannabis Management under section 342.02.
828	828	Subd. 2.Certification to commissioner of revenue.(a) By July 15, 2024, and annually
829	829	thereafter, the commissioner of management and budget must certify to the commissioner of revenue
830	830	the balance of the local government cannabis aid account in the special revenue fund as of the
831	831	immediately preceding June 30.
832	832	(b) By June 1, 2024, and annually thereafter, the director must certify to the commissioner of
833	833	revenue the number of cannabis businesses, as defined under section 342.01, subdivision 14, licensed
834	834	under chapter 342 as of the previous January 1, disaggregated by county and city.
835	835	Subd. 3.Aid to counties.(a) Beginning for aid payable in 2024, the amount available for aid
836	836	to counties under this subdivision equals 50 percent of the amount certified in that year to the
837	837	commissioner under subdivision 2, paragraph (a).
838	838	2R
839	839	APPENDIX
840	840	Repealed Minnesota Statutes: 25-00107 (b) Twenty percent of the amount under paragraph (a) must be distributed equally among all
841	841	counties.
842	842	(c) Eighty percent of the amount under paragraph (a) must be distributed proportionally to each
843	843	county according to the number of cannabis businesses located in the county as compared to the
844	844	number of cannabis businesses in all counties as of the most recent certification under subdivision
845	845	2, paragraph (b).
846	846	Subd. 4.Aid to cities.(a) Beginning for aid payable in 2024, the amount available for aid to
847	847	cities under this subdivision equals 50 percent of the amount certified in that year to the commissioner
848	848	under subdivision 2, paragraph (a).
849	849	(b) The amount under paragraph (a) must be distributed proportionally to each city according
850	850	to the number of cannabis businesses located in the city as compared to the number of cannabis
851	851	businesses in all cities as of the most recent certification under subdivision 2, paragraph (b).
852	852	Subd. 5.Payment.The commissioner of revenue must compute the amount of aid payable to
853	853	each county and city under this section. On or before September 1 of each year, the commissioner
854	854	must certify the amount to be paid to each county and city in that year. The commissioner must pay
855	855	the full amount of the aid on December 26 annually.
856	856	Subd. 6.Appropriation.Beginning in fiscal year 2025 and annually thereafter, the amount in
857	857	the local government cannabis aid account in the special revenue fund is annually appropriated to
858	858	the commissioner of revenue to make the aid payments required under this section.
859	859	3R
860	860	APPENDIX
861	861	Repealed Minnesota Statutes: 25-00107 Laws 2023, chapter 64, article 15, section 24
862	862	Sec. 24. TAX FILING MODERNIZATION.
863	863	Subdivision 1.Account established; appropriation.A tax filing modernization account is
864	864	established in the special revenue fund. All funds in the tax filing modernization account are
865	865	appropriated to the commissioner of revenue for the purposes specified in subdivision 3.
866	866	Subd. 2.Transfer.$5,000,000 in fiscal year 2024 is transferred to the tax filing modernization
867	867	account from the general fund. This is a onetime transfer.
868	868	Subd. 3.Eligible uses.(a) The commissioner of revenue may use funds in the tax filing
869	869	modernization account to modernize the state process for filing individual income tax returns,
870	870	including:
871	871	(1) updating and reviewing changes to individual income tax forms resulting from this act;
872	872	(2) coordinating the process for filing state individual income tax returns with free filing options
873	873	for the federal income tax; and
874	874	(3) development and implementation of state free filing options for the individual income tax.
875	875	(b) Beginning July 1, 2026, the commissioner of revenue may use any unspent funds in the tax
876	876	filing modernization account to make taxpayer assistance grants to eligible organizations qualifying
877	877	under section 7526A(e)(2)(B) of the Internal Revenue Code.
878	878	Subd. 4.Unspent funds.Any unspent funds in the tax filing modernization account cancel to
879	879	the general fund on June 30, 2027.
880	880	4R
881	881	APPENDIX
882	882	Repealed Minnesota Session Laws: 25-00107