HF 2466

Introduction - 94th Legislature (2025 - 2026)

Posted on 03/26/2025 12:25 p.m.

A bill for an act
relating to taxation; modifying a provision governing contingent reductions in
provider taxes; amending Minnesota Statutes 2024, section 295.52, subdivision
8.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2024, section 295.52, subdivision 8, is amended to read:

Subd. 8.

Contingent reduction in tax rate.

(a) By December 1 of each year, deleted text begin beginning
in 2011, deleted text end the commissioner of management and budget deleted text begin shall deleted text end new text begin must new text end determine the projected
balance in the health care access fund for the biennium.

(b) If the commissioner of management and budget determines that the projected balance
in the health care access fund for the biennium reflects a ratio of revenues to expenditures
and transfers greater than 125 percent, and if the actual cash balance in the fund is adequate,
as determined by the commissioner of management and budget, the commissioner, in
consultation with the commissioner of revenue, deleted text begin shall deleted text end new text begin must new text end reduce the tax rates levied under
subdivisions 1, 1a, 2, 3, and 4, for the subsequent calendar year sufficient to reduce the
structural balance in the fund. The rate may be reduced to the extent that the projected
revenues for the biennium do not exceed 125 percent of expenditures and transfers. The
new rate shall be rounded to the nearest one-tenth of one percent. The rate reduction under
this paragraph expires at the end of each calendar year and is subject to an annual
redetermination by the commissioner of management and budget.

(c) For purposes of the analysis defined in paragraph (b), the commissioner of
management and budget deleted text begin shall deleted text end new text begin must new text end include projected revenues.