1.1 	A bill for an act
1.2 	relating to taxation; establishing a Minnesota wealth tax;proposing coding for 
1.3 	new law in Minnesota Statutes, chapter 290.
1.4 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.5 	Section 1. [290.055] WEALTH TAX.
1.6 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
1.7 	the meanings given.
1.8 	(b) "Pass-through entity" has the meaning given in section 291.005, subdivision 1.
1.9 	(c) "Situs of property" means, with respect to:
1.10 	(1) real property, the state or country in which it is located;
1.11 	(2) tangible personal property, the state or country in which it is normally kept or located; 
1.12 	and
1.13 	(3) intangible personal property, the state or country in which an individual taxpayer is 
1.14 	domiciled or the state of which a trust is a resident.
1.15 	(d) "Taxable wealth" means:
1.16 	(1) the value of all of a taxpayer's property, real or personal, tangible or intangible, but 
1.17 	excluding property with a situs outside of Minnesota; minus
1.18 	(2) the sum of all debts and financial obligations owed by the taxpayer.
1.19 		Subd. 2.Tax imposed. A tax is annually imposed equal to one percent of the taxable 
1.20 	wealth of an individual or trust in excess of $10,000,000.
2.1 		Subd. 3.Taxes imposed are in addition to other taxes. The tax imposed under this 
2.2 	section is in addition to the tax imposed under chapter 291; section 289A.08, subdivision 
2.3 	7; and any other tax imposed under this chapter.
2.4 		Subd. 4.Property situs; nonresident ownership interests in pass-through 
2.5 	businesses. For a nonresident taxpayer with an ownership interest in a pass-through entity 
2.6 	with assets that include real or tangible personal property, situs of the real or tangible personal 
2.7 	property is determined as if the pass-through entity does not exist and the real or tangible 
2.8 	personal property is personally owned by the taxpayer. If the pass-through entity is owned 
2.9 	by a person or persons in addition to the taxpayer, ownership of the property is attributed 
2.10 	to the taxpayer in proportion to the taxpayer's capital ownership share of the pass-through 
2.11 	entity.
2.12 		Subd. 5.Determination of property values. The value of a taxpayer's property must  
2.13 	be calculated in the same manner as the value of a gross estate under section 2031 of the 
2.14 	Internal Revenue Code.

2.15 	EFFECTIVE DATE. This section is effective for taxable years beginning after December 
2.16 	31, 2025.