SF3805

Purpose

Introduce a new tax donation checkoff that allows Minnesota taxpayers to contribute to the Minnesota Victims of Crime Account through their income tax return. The bill also requires tax preparers to inform clients about this option and to display a contribution line on tax forms.

Main Provisions

• Adds a new subdivision Subd.5c to Minnesota Statutes 2024 section 270C.445 to create a Minnesota victims of crime account checkoff.
• Requires tax preparers to give written notice about the option to contribute to the Minnesota victims of crime account to both corporate clients and individual clients who file income tax returns, or to clients who file a claim under chapter 290A.
• The notice must be provided at the same time as the preliminary worksheets or other documents used to prepare the client’s return.
• The notice must include a line on the tax form displaying the contribution option.
• The bill references the authority to contribute via sections 290.435 and 290.436, and mentions coding for a new law in Minnesota Statutes chapter 290 (and related sections like 290A).

Main Changes to Law

• Creates a voluntary tax donation checkoff to fund the Minnesota Victims of Crime Account.
• Adds duties for tax preparers to inform taxpayers about the option and to present a designated contribution line on tax documents.
• Extends the checkoff mechanism to both corporate and individual tax filers, including those filing under chapter 290A.

Practical Implications

• Taxpayers will be asked if they want to contribute to the Minnesota Victims of Crime Account when filing their state tax return.
• Tax preparation providers must include this option and the contribution line in the materials they send to clients.

Considerations

• The effectiveness depends on taxpayer participation and how prominently the option is presented.
• Compliance burden is limited to providing notice and displaying the contribution line during tax preparation.

Summary of Affected Law

• Minnesota Statutes 2024 section 270C.445 is amended by adding Subd.5c.
• References to Minnesota income tax donation mechanisms in sections 290.435 and 290.436.
• Mentions coding for a new law in Minnesota Statutes chapter 290 and related provisions (chapter 290A).

Relevant Terms - Minnesota victims of crime account checkoff - tax donation checkoff - Minnesota Statutes 2024 section 270C.445 - Subd.5c (Subsection 5c) - 290.435 - 290.436 - corporate clients - individual clients - income tax return - chapter 290A - preliminary worksheets - display contributions line - tax preparer - notice to clients

Relevant Terms