SF 4106
Introduction - 94th Legislature (2025 - 2026)
Posted on 03/27/2026 09:02 a.m.
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A bill for an act
relating to taxation; modifying and providing procedures for the commissioner of
revenue to issue revenue rulings; providing for requests for revenue rulings and
required fees charged to requesters; requiring reports; appropriating money;
amending Minnesota Statutes 2024, sections 14.03, subdivision 3, as amended;
270C.07; 270C.08; 270C.085; 270C.15.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2024, section 14.03, subdivision 3, as amended by Laws
2025, chapter 21, section 8, is amended to read:
Subd. 3.
Rulemaking procedures.
(a) The definition of a rule in section 14.02,
subdivision 4, does not include:
(1) rules concerning only the internal management of the agency or other agencies that
do not directly affect the rights of or procedures available to the public;
(2) an application deadline on a form; and the remainder of a form and instructions for
use of the form to the extent that they do not impose substantive requirements other than
requirements contained in statute or rule;
(3) the curriculum adopted by an agency to implement a statute or rule permitting or
mandating minimum educational requirements for persons regulated by an agency, provided
the topic areas to be covered by the minimum educational requirements are specified in
statute or rule;
(4) procedures for sharing data among government agencies, provided these procedures
are consistent with chapter 13 and other law governing data practices.
(b) The definition of a rule in section 14.02, subdivision 4, does not include:
(1) rules of the commissioner of corrections relating to the release, placement, term, and
supervision of inmates serving a supervised release or conditional release term, the internal
management of institutions under the commissioner's control, and rules adopted under
section 609.105 governing the inmates of those institutions;
(2) rules relating to weight limitations on the use of highways when the substance of the
rules is indicated to the public by means of signs;
(3) opinions of the attorney general;
(4) the data element dictionary and the annual data acquisition calendar of the Department
of Education to the extent provided by section 125B.07;
(5) the occupational safety and health standards provided in section 182.655;
(6) revenue deleted text begin noticesdeleted text end new text begin rulingsnew text end and tax information bulletins of the commissioner of revenue;
(7) uniform conveyancing forms adopted by the commissioner of commerce under
section 507.09;
(8) standards adopted by the Electronic Real Estate Recording Commission established
under section 507.0945;
(9) the interpretive guidelines developed by the commissioner of human services to the
extent provided in chapter 245A; or
(10) the interpretive guidelines developed by the commissioner of children, youth, and
families to the extent provided in chapter 142B.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2025.
new text end
Sec. 2.
Minnesota Statutes 2024, section 270C.07, is amended to read:
270C.07 REVENUE deleted text begin NOTICESdeleted text end new text begin RULINGSnew text end .
Subdivision 1.
Authority.
The commissioner may make, adopt, and publish interpretive
revenue deleted text begin noticesdeleted text end new text begin rulingsnew text end . A "revenue deleted text begin noticedeleted text end new text begin rulingnew text end " is a policy statement that has been
published pursuant to subdivision 5 and that provides interpretation, details, or supplementary
information concerning the application of state revenue laws or rules promulgated by the
commissioner. Revenue deleted text begin noticesdeleted text end new text begin rulingsnew text end are published for the information and guidance of
taxpayers, local government officials, the department, and others concerned.
Subd. 2.
Effect.
Revenue deleted text begin noticesdeleted text end new text begin rulingsnew text end do not have the force and effect of law and
have no precedential effect, but may be relied on by taxpayers new text begin unless and new text end until revoked or
modified. deleted text begin A notice may be expressly revoked or modified by the commissioner, by the
issuance of a revenue notice, but may not be revoked or modified retroactively to the
detriment of the taxpayers. A change in the law or an interpretation of the law occurring
after the revenue notice is issued, whether in the form of a statute, court decision,
administrative rule, or revenue notice, results in revocation or modification of the notice to
the extent that the change affects the notice.
deleted text end
new text begin Subd. 2a. new text end
new text begin Revocation or modification. new text end
new text begin
The commissioner may expressly revoke or
modify a revenue ruling by issuing a subsequent revenue ruling. The commissioner must
not revoke or modify a revenue ruling retroactively to the detriment of a taxpayer. Revenue
rulings are revoked or modified to the extent they conflict with the law or an interpretation
of the law occurring after the revenue ruling is issued, whether in the form of a statute, court
decision, administrative rule, or revenue ruling.
new text end
Subd. 3.
Retroactivity.
Revenue deleted text begin noticesdeleted text end new text begin rulingsnew text end are generally interpretive of existing
law and therefore are retroactive to the effective date of the applicable law provision unless
otherwise stated in the deleted text begin noticedeleted text end new text begin rulingnew text end .
Subd. 4.
Issuance.
The issuance of revenue deleted text begin noticesdeleted text end new text begin rulingsnew text end is at the discretion of the
commissioner. The commissioner shall establish procedures governing the issuance of
revenue deleted text begin noticesdeleted text end new text begin rulingsnew text end and tax information bulletins. deleted text begin At least one week before publication
of a revenue notice in the State Register, the commissioner shall provide a copy of the notice
to the chairs of the Taxes Committee of the house of representatives and the Taxes and Tax
Laws Committee of the senate.
deleted text end
new text begin Subd. 4a. new text end
new text begin Request. new text end
new text begin
(a) Any person may submit a revenue ruling request to the
commissioner. The request must contain the following:
new text end
new text begin
(1) the tax type;
new text end
new text begin
(2) the name and characteristics of the taxpayer submitting the request;
new text end
new text begin
(3) a description of the issue to be addressed;
new text end
new text begin
(4) information demonstrating the frequency of the issue;
new text end
new text begin
(5) any supporting materials and documents that provide background information on
the issue;
new text end
new text begin
(6) any other relevant information and documents identified by the commissioner; and
new text end
new text begin
(7) a nonrefundable submission fee of $1,000.
new text end
new text begin
(b) The commissioner must acknowledge all submitted requests within 21 days of receipt.
The person making the request must provide additional information and documents as
requested by the commissioner within 60 days of the request. Failure to timely provide the
requested information and documents may result in the request being denied. Upon the
commissioner's receipt of all requested additional information and documents, the person's
request is considered complete.
new text end
new text begin
(c) The commissioner must respond to all requests for revenue rulings either by issuance
of a ruling or by a letter explaining why the commissioner declined to issue a ruling. If the
commissioner declines the request, the commissioner must provide the person making the
request with a letter explaining the reasons for declining to do so within 45 days of receipt
of the completed request. If the commissioner does not decline the completed request, the
commissioner shall complete the revenue ruling and submit it for feedback under subdivision
5 within 210 days of the commissioner's receipt of the completed request.
new text end
new text begin
(d) The commissioner's revenue rulings, decisions to decline to issue revenue rulings,
and other determinations made under this section may not be appealed.
new text end
new text begin Subd. 4b. new text end
new text begin Fees. new text end
new text begin
(a) The commissioner must charge fees to the person submitting a
revenue ruling request under subdivision 4a to offset the direct and indirect costs of
responding to the request.
new text end
new text begin
(b) For purposes of this section, "hourly rate" means $140 in calendar year 2025, and
as adjusted each year thereafter. The commissioner must adjust the hourly rate for inflation
as provided in section 270C.22. The statutory year is calendar year 2025.
new text end
new text begin
(c) The following hours tiers are established for revenue rulings:
new text end
new text begin
(1) first tier - 0 to 20 hours;
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(2) second tier - 21 to 40 hours;
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(3) third tier - 41 to 80 hours;
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(4) fourth tier - 81 to 120 hours; and
new text end
new text begin
(5) fifth tier - over 120 hours.
new text end
new text begin
(d) The commissioner must evaluate all requests and determine which tier applies. The
commissioner must make the determination based on the number of hours the commissioner
estimates it will take to respond to the request.
new text end
new text begin
(e) The revenue ruling fee charged for each request placed in the first four tiers must
equal the maximum number of hours in the applicable tier multiplied by the hourly rate.
The revenue ruling fee charged for each request placed in the fifth tier equals the hourly
rate multiplied by the commissioner's estimate of the likely time required to respond to the
request. This revenue ruling fee is nonrefundable.
new text end
new text begin
(f) For all revenue ruling requests, the commissioner must notify the person requesting
the ruling of the estimated revenue ruling fee within 21 days after the request is considered
complete under subdivision 4a, paragraph (b). The person shall pay the estimated revenue
ruling fee to the commissioner within ten days after notification. Failure to timely pay the
fee will result in the request being denied.
new text end
new text begin
(g) Upon completion of the revenue ruling in response to a request placed in the fifth
tier, if the actual amount of the fee to complete the ruling is greater than the estimated fee,
the commissioner must notify the person of the remaining fee due. The person must pay
the remaining fee due within ten days of notification. Failure to timely pay the remaining
fee due may result in the denial of the request.
new text end
new text begin
(h) Before a revenue ruling in the first tier is issued, if the person withdraws the request
and so notifies the commissioner, the commissioner may stop work on the request and must
determine the number of hours spent on the request. If those hours, when multiplied by the
hourly rate, exceeds the estimated fee paid, the commissioner must refund the difference
to the person.
new text end
Subd. 5.
new text begin Review and new text end publication.
new text begin The commissioner shall seek feedback from the tax
section of the Minnesota State Bar Association and the Minnesota Society of Certified
Public Accountants prior to publication of a revenue ruling. new text end The commissioner shall publish
the revenue deleted text begin noticesdeleted text end new text begin rulingsnew text end in the State Register and in any other manner that makes them
accessible to the general public. deleted text begin The commissioner may charge a reasonable fee for
publications.deleted text end new text begin At least two weeks before publication of a revenue ruling in the State Register,
the commissioner shall provide a copy of the ruling to the chairs and ranking minority
members of the legislative committees with jurisdiction over taxes.
new text end
new text begin Subd. 6. new text end
new text begin Confidentiality. new text end
new text begin
Prior to publication or other public dissemination, the
commissioner shall redact certain information from a revenue ruling or proposed ruling,
including the name and address of the taxpayer and taxpayer's representative.
new text end
new text begin Subd. 7. new text end
new text begin Effect of determination. new text end
new text begin
A determination of any kind made by the commissioner
pursuant to this section is not a rule and is not subject to the Administrative Procedure Act
under chapter 14, including section 14.386.
new text end
new text begin Subd. 8. new text end
new text begin Legislative report. new text end
new text begin
(a) On or before January 31, 2027, and on or before January
31 each year thereafter, the commissioner must report in writing to the legislature the
following information for the immediately preceding calendar year:
new text end
new text begin
(1) the number of revenue ruling requests submitted and the number of those rulings
subsequently issued;
new text end
new text begin
(2) the tax types for which rulings were requested;
new text end
new text begin
(3) the types and characteristics of taxpayers requesting rulings;
new text end
new text begin
(4) the fees recovered under subdivision 4b and the extent to which those fees offset the
direct and indirect cost of responding to requests for revenue rulings from persons under
subdivision 4a; and
new text end
new text begin
(5) any other information that the commissioner considers relevant to legislative oversight
of revenue rulings.
new text end
new text begin
(b) The report must be filed as provided in section 3.195, and copies must be provided
to the chairs and ranking minority members of the legislative committees with jurisdiction
over taxes and appropriations to the Department of Revenue.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2025.
new text end
Sec. 3.
Minnesota Statutes 2024, section 270C.08, is amended to read:
270C.08 TAX INFORMATION BULLETINS.
The commissioner may issue tax information bulletins. "Tax information bulletins" are
informational guides to enable taxpayers and local governmental officials to become more
familiar with state revenue laws and their rights and responsibilities under these laws.
Nothing contained in the tax information bulletins supersedes, alters, or otherwise changes
any provisions of the state revenue laws, administrative rules, court decisions, or revenue
deleted text begin noticesdeleted text end new text begin rulingsnew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2025.
new text end
Sec. 4.
Minnesota Statutes 2024, section 270C.085, is amended to read:
270C.085 NOTIFICATION REQUIREMENTS; SALES AND USE TAXES.
The commissioner of revenue shall establish a means of electronically notifying persons
holding a sales tax permit under section 297A.84 of any statutory change in chapter 297A
and any issuance or change in any administrative rule, revenue deleted text begin noticedeleted text end new text begin rulingnew text end , or sales tax
fact sheet or other written information provided by the department explaining the
interpretation or administration of the tax imposed under that chapter. The notification must
indicate the basic subject of the statute, rule, fact sheet, or other material and provide an
electronic link to the material. Any person holding a sales tax permit that provides an
electronic address to the department must receive these notifications unless they specifically
request electronically, or in writing, to be removed from the notification list. This requirement
does not replace traditional means of notifying the general public or persons without access
to electronic communications of changes in the sales tax law.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2025.
new text end
Sec. 5.
Minnesota Statutes 2024, section 270C.15, is amended to read:
270C.15 REVENUE DEPARTMENT SERVICE AND RECOVERY SPECIAL
REVENUE FUND.
A Revenue Department service and recovery special revenue fund is created for the
purpose of recovering the costs of furnishing government data and related services or
products, as well as recovering costs associated with collecting local taxes on sales deleted text begin anddeleted text end new text begin ,new text end the
retail delivery fee established under chapter 168Enew text begin , and the revenue ruling fees established
under this chapternew text end . All money collected under this section is deposited in the Revenue
Department service and recovery special revenue fund. Money in the fund is appropriated
to the commissioner to reimburse the department for the costs incurred in administering the
tax law or providing the data, service, or product. Any money paid to the department as a
criminal fine for a violation of state revenue law that is designated by the court to fund
enforcement of state revenue law is appropriated to this fund.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective July 1, 2025.
new text end
Sec. 6. new text begin EFFECT OF REVENUE NOTICES.
new text end
new text begin
A revenue notice published by the commissioner of revenue on or before July 1, 2025,
has the full force and effect of revenue rulings under Minnesota Statutes, section 270C.07.
If the commissioner of revenue modifies a revenue notice after June 30, 2025, the
commissioner of revenue must publish the modification as a revenue ruling pursuant to
Minnesota Statutes, section 270C.07.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 7. new text begin APPROPRIATION; REVENUE RULINGS.
new text end
new text begin
$530,000 in fiscal year 2026 and $530,000 in fiscal year 2027 are appropriated from the
general fund to the commissioner of revenue to administer this act.
new text end