SF 5195
Introduction - 94th Legislature (2025 - 2026)
Posted on 04/23/2026 09:15 a.m.
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A bill for an act
relating to taxation; establishing a tax on certain individuals and organizations
convicted of and benefiting from fraud; proposing coding for new law in Minnesota
Statutes, chapter 295.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
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[295.90] TAX ON AMOUNTS OBTAINED THROUGH FRAUD.
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new text begin Subdivision 1. new text end
new text begin Definitions. new text end
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(a) For purposes of this section, the following terms have
the meanings given.
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(b) "Commissioner" means the commissioner of revenue.
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(c) "Fraud" means the intentional use of deceit or dishonest means of obtaining state
money from a state program or appropriation, excluding refunds for overpayment of taxes,
without regard to whether a conviction resulted.
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new text begin Subd. 2. new text end
new text begin Tax imposed. new text end
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(a) A tax equal to 100 percent is imposed on the amount obtained
by fraud:
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(1) by any individual or organization convicted by a state or federal court of fraud;
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(2) by any individual or organization that the commissioner has determined to be obtained
by fraud;
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(3) by any individual or organization that receives compensation from an individual or
organization described in clause (1) in exchange for participating in the activity resulting
in a conviction of fraud; and
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(4) by any individual or organization that receives compensation from an individual or
organization described in clause (2) in exchange for participating in activity that the
commissioner has determined to be obtained by fraud.
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(b) The tax under this section applies regardless of any amount of restitution or penalty
imposed or paid by an individual or organization described in paragraph (a).
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new text begin Subd. 3. new text end
new text begin Role of commissioner. new text end
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(a) The commissioner, in consultation with federal,
state, or local law enforcement, or another federal or state agency, as applicable, must
investigate individuals and organizations that the commissioner reasonably believes have
engaged in fraud.
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(b) The commissioner must establish the schedule for payment and means of enforcement
of the tax imposed under this section.
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(c) The provisions of section 270C.35 apply to appeals of an order assessing the tax
imposed under this section.
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new text begin Subd. 4. new text end
new text begin Deposit of money. new text end
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(a) The commissioner must deposit the money collected
from the tax imposed under this section to the tax relief account. Money in the account must
be used only for income or property tax relief, or both, as determined by law.
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(b) The tax relief account is established in the special revenue fund.
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new text begin EFFECTIVE DATE. new text end
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This section is effective retroactively for determinations of fraud
made after December 31, 2019.
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