1.1 A bill for an act
1.2 relating to taxation; establishing a private letter ruling program; requiring reports;
1.3 proposing coding for new law in Minnesota Statutes, chapter 270C.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5 Section 1. [270C.075] PRIVATE LETTER RULINGS.
1.6 Subdivision 1.Program established.By January 1, 2026, the commissioner shall, by
1.7administrative rule adopted under chapter 14, establish and implement a program for issuing
1.8private letter rulings to taxpayers to provide guidance as to how the commissioner will apply
1.9Minnesota tax law to a specific transaction or proposed transaction, arrangement, or other
1.10fact situation of the applying taxpayer. The commissioner must include in each ruling an
1.11explanation of the reasoning for the determination. In establishing the terms of the program,
1.12the commissioner may provide that rulings will not be issued in specified subject areas, for
1.13categories of transactions, or under specified provisions of law, if the commissioner
1.14determines doing so is in the best interests of the state and sound tax administration. The
1.15program must include a process for the representative of a taxpayer to apply for a private
1.16letter ruling and to communicate with the commissioner regarding the requested ruling.
1.17 Subd. 2.Application procedure; fees.(a) The commissioner shall establish an
1.18application procedure and forms for a taxpayer or the taxpayer's appointed representative
1.19to request a private letter ruling. The commissioner may require the taxpayer to provide any
1.20supporting factual information and certifications that the commissioner determines necessary
1.21or appropriate to issue a private letter ruling. The requirements may vary based on the type
1.22of ruling requested.
1Section 1.
REVISOR EAP/AD 25-0105312/05/24
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 912
NINETY-FOURTH SESSION
Authored by Quam02/17/2025
The bill was read for the first time and referred to the Committee on Taxes 2.1 (b) The commissioner may, in the administrative rule, establish a fee schedule to recover
2.2the department's actual cost of preparing private letter rulings. The maximum fee per private
2.3letter ruling is $........ The commissioner may require the applicant to pay the required fee
2.4for a private letter ruling before the application is considered. If the administrative rule
2.5provides for payment of a fee as a condition for providing a private letter ruling, the rule
2.6must provide a fee structure that varies the amount of the fee by the complexity of the request
2.7or the number and type of issues or both.
2.8 (c) If the commissioner fails to issue a ruling to the taxpayer within 90 days after the
2.9taxpayer's filing of a completed application, the commissioner must refund the application
2.10fee to the taxpayer; however, the commissioner must issue a private letter ruling unless the
2.11taxpayer withdraws the request.
2.12 (d) Any fees collected under this section must be deposited in the Revenue Department
2.13service and recovery special revenue fund established under section 270C.15, and are
2.14appropriated to the commissioner to offset the cost of issuing private letter rulings and
2.15related administrative costs.
2.16 Subd. 3.Effect.(a) A private letter ruling is binding on the commissioner with respect
2.17to the taxpayer to whom the ruling is issued if:
2.18 (1) there was no misstatement or omission of material facts in the application or other
2.19information provided to the commissioner;
2.20 (2) the facts that subsequently developed were not materially different from the facts
2.21upon which the ruling was based;
2.22 (3) the applicable statute, administrative rule, federal law referenced by state law, or
2.23other relevant law has not changed; and
2.24 (4) the taxpayer acted in good faith in applying for and relying on the ruling.
2.25 (b) Private letter rulings have no precedential effect and may not be relied upon by a
2.26taxpayer other than as provided in paragraph (a).
2.27 Subd. 4.Public access.The commissioner shall make private letter rulings issued under
2.28this section available to the public on the department's website. The commissioner must
2.29organize the private letter rulings by tax type and must make them available in a searchable
2.30format. The published rulings must redact any information that would permit identification
2.31of the requesting taxpayer.
2Section 1.
REVISOR EAP/AD 25-0105312/05/24 3.1 Subd. 5.Legislative report.(a) By January 31 of each odd-numbered year, the
3.2commissioner shall report in writing to the legislature the following information for the
3.3immediately preceding two calendar years:
3.4 (1) the number of applications for private letter rulings;
3.5 (2) the number of private letter rulings issued, including the number issued within the
3.690-day time period under subdivision 2, paragraph (c);
3.7 (3) the amount of application fees refunded by tax type;
3.8 (4) the tax types for which rulings were requested;
3.9 (5) the types and characteristics of taxpayers applying for rulings; and
3.10 (6) any other information that the commissioner considers relevant to legislative oversight
3.11of the private letter ruling program.
3.12 (b) The report must be filed as provided in section 3.195, and copies must be provided
3.13to the chairs and ranking minority members of the committees of the house of representatives
3.14and the senate with jurisdiction over taxes and appropriations to the Department of Revenue.
3.15 EFFECTIVE DATE.This section is effective the day following final enactment, except
3.16that the first legislative report under subdivision 5 is due January 31, 2028.
3Section 1.
REVISOR EAP/AD 25-0105312/05/24