Purpose of the Bill

The purpose of this Minnesota legislative bill is to appropriate funds to support an expanded corporate tax compliance initiative. This initiative aims to improve the identification and collection of taxes owed by corporations.

Main Provisions

• Appropriation of Funds: The bill proposes an appropriation of $10,000,000 from the general fund for fiscal year 2026. This funding is designated for the development and implementation of the corporate tax compliance initiative.
• Duration of Funding: The allocated funds will remain available until July 1, 2029, allowing for sustained efforts over a multi-year period.
• Focus of the Initiative: The initiative is specifically aimed at enhancing tax compliance and enforcement activities, under the corporate franchise tax laws, by identifying and addressing inadequate reporting of taxable income and the failure to pay full tax liabilities.
• Targeted Corporations: Priority will be given to enforcing compliance among corporations that report $25,000,000 or more in Minnesota sales or gross receipts for any taxable year.

Significant Changes to Existing Law

• The bill specifies that the funds appropriated for this initiative are intended to supplement existing resources, not replace them. This ensures that current efforts to enforce tax compliance are reinforced rather than reduced.

Relevant Terms

corporate tax compliance, appropriation, tax enforcement, corporate franchise tax, Minnesota sales, tax liabilities, taxable income, fiscal year, general fund.