Purpose of the Bill

This legislation aims to amend various taxation laws in Minnesota, including changes to individual income taxes, corporate franchise taxes, property taxes, and more. It is designed to streamline tax processes, repeal certain credits and aids, and adjust tax rates and bases to better suit current economic needs.

Main Provisions

• Taxation Modifications: The bill proposes amendments to individual and corporate taxes, emphasizing adjustments that can have an economic impact across different sectors.
• Repeal of Certain Credits: The assignability of the education credit is repealed, impacting how education-related tax credits can be used or transferred.
• Research Credit: A portion of the research credit is made partially refundable, which could provide more immediate financial benefits to businesses engaged in research and development.
• Property Tax Changes: Modifications are introduced to the airline flight property tax, and details related to property tax assessments on leased government properties are adjusted.
• Sales and Use Tax Adjustments: The sales and use tax rate is reduced, and the tax base is expanded to include certain professional services that were previously exempt.
• Local Government Aid and Cannabis Funding: Repealing local government cannabis aid and the partial dedication of tax revenue from cannabis sales reflect a policy shift in the handling of cannabis-related funds.
• Budgetary Changes: The bill reduces appropriations for aquatic invasive species prevention and cancels certain budget allocations, suggesting a reprioritization of state funds.

Significant Changes to Existing Law

• The bill repeals various statutes related to tax filing modernization and local government cannabis aid.
• There is a focus on making the taxation system more efficient by clarifying and amending several statutes related to income and corporate taxes.
• The legislation includes provisions for reporting and accountability in managing new and traditional taxation methods, aligning with modernized fiscal management practices.

Relevant Terms

• Income Tax
• Corporate Tax
• Property Tax
• Sales and Use Tax
• Research Credit
• Education Credit
• Sustainable Aviation Fuel
• Cannabis Tax
• Local Government Aid