Purpose of the Bill

The purpose of this bill is to improve the collection of corporate taxes in Minnesota by funding an initiative focused on ensuring that corporations comply with existing tax laws.

Main Provisions

• The bill proposes allocating $10,000,000 in fiscal year 2026 from the general fund to the commissioner of revenue.
• This funding is designated for developing and implementing an expanded corporate tax compliance initiative, which will focus on making sure corporations accurately report their taxable income and pay all required taxes.
• The initiative specifically targets corporations with $25,000,000 or more in sales or gross receipts in Minnesota for a taxable year.
• Funds are available until July 1, 2029.

Significant Changes to Existing Law

• The bill does not change existing tax laws but allocates additional funds to enforce and enhance compliance with existing corporate tax regulations.
• The initiative is aimed at improving oversight and enforcement, particularly among large corporations that might not be fulfilling their tax obligations.

Relevant Terms

• Corporate tax compliance
• Corporate franchise tax
• Tax liabilities
• Enforcement activities