HF1106

Purpose

• The bill aims to change how tax expenditures are reviewed and managed in Minnesota. It seeks to modify requirements for the Tax Expenditure Review Commission and to repeal certain legislative requirements for creating or renewing tax expenditures. It also makes targeted changes to several related statutes.

Main provisions

• Modify requirements for the Tax Expenditure Review Commission (the panel that evaluates tax expenditures).
• Repeal legislative requirements for new or renewed tax expenditures (reducing or removing some steps or oversight for creating or extending tax breaks).
• Amend Minnesota Statutes 2024 sections 3.8855 subdivisions 2, 3, 4, 5, 7, and 8 (adjusting definitions and duties connected to tax expenditures).
• Repeal Minnesota Statutes 2024 section 3.192.1.7 (removing a specific statutory provision related to tax expenditures).
• Statutory definitions updated in 3.8855 subdivision 2 to clarify terms:
  • Commissioner means the commissioner of revenue.
  • Significant tax expenditure and tax expenditure have the meanings given in section 270C.11 subdivision 6.

Effect on existing law (significant changes)

• The bill would reduce or alter the formal requirements and oversight for new or renewed tax expenditures, potentially speeding up or simplifying how tax expenditures are created or renewed.
• It aligns or references definitions of key terms (commissioner, tax expenditure, significant tax expenditure) to the definitions found in the related provisions of 270C.11.
• It removes or changes the statutory requirements found in the repealed section (3.192.1.7), and adjusts several provisions within 3.8855 to reflect the new approach.

Definitions and key terms (as updated in the bill)

• Commissioner: the commissioner of revenue.
• Tax expenditure: as defined in 270C.11 subdivision 6.
• Significant tax expenditure: as defined in 270C.11 subdivision 6.

Relevant terms - Tax expenditure - Significant tax expenditure - Tax Expenditure Review Commission - Commissioner of Revenue - Minnesota Statutes 2024 section 3.8855 - Minnesota Statutes 2024 section 3.192.1.7 - 270C.11 subdivision 6