Purpose of the Bill

This bill aims to introduce a new tax structure targeting the financial growth of certain assets held by colleges and universities in Minnesota. The purpose is to generate additional funding for state education programs.

Main Provisions

• Tax on Assets: The bill proposes a tax on the growth of certain financial assets owned by higher education institutions. This could include interest, dividends, and any earnings that arise from these assets.
• Creation of a Special Account: A new account, named the "Higher Education Assets Growth Account," will be established within the state treasury's special revenue fund.
• Allocation of Funds: Funds accumulated in this account will be dedicated to the state grant program aimed at supporting education initiatives as specified under Minnesota Statutes section 136A.121.
• Non-Lapsing Funds: Unlike typical budgeting procedures where unspent funds return to the general fund, any money left in this account at the end of the fiscal year will carry over, remaining available for future use.

Significant Changes to Existing Law

• The introduction of an asset growth tax on educational institutions is a new measure affecting how financial resources from asset earnings are managed and taxed.
• The bill amends Minnesota Statutes 2024 section 136A.121 by adding a specific subdivision aimed at managing these funds.

Relevant Terms

higher education, assets growth, taxation, special revenue fund, state treasury, education grants, financial assets, Minnesota Statutes 136A.121, non-lapsing funds.