Purpose of the Bill

The purpose of this bill is to address taxation related to certain financial growths of colleges and universities in Minnesota. It aims to establish a specific account within the state's special revenue fund to manage these taxations effectively.

Main Provisions

• Creation of the Higher Education Assets Growth Account:

  • This account is established within the special revenue fund in the Minnesota state treasury.
  • Its purpose is to manage taxes imposed on the growth of certain assets owned by colleges and universities.

• Funding and Income:

  • This account will collect and distribute money specifically designated for the state grant program.
  • Earnings such as interest or dividends accrued from the account will remain within it, rather than reverting to the general fund.

Significant Changes to Existing Law

• New Subdivision in State Statutes:

  • A new subdivision is added to Minnesota Statutes, section 136A.121, to establish the higher education assets growth account.

• Permanent Fund Retention:

  • Money left in the account at the end of a fiscal year remains in the account, ensuring ongoing availability for future expenditure instead of being transferred back to the general fund.

Relevant Terms

taxation, higher education, special revenue fund, Minnesota state treasury, colleges and universities, state grant program, asset growth, financial earnings