HF 4831

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/18/2024 04:41pm

A bill for an act
relating to taxation; taxpayer assistance and outreach grants; requiring the
Department of Revenue to make taxpayer assistance and outreach grants;
appropriating money; amending Minnesota Statutes 2022, section 270C.21.

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

Section 1.

Minnesota Statutes 2022, section 270C.21, is amended to read:

270C.21 TAXPAYER ASSISTANCE GRANTS new text begin ; TAX CREDIT OUTREACH
GRANTS new text end .

Subdivision 1.

Taxpayer assistance.

When the commissioner awards grants deleted text begin to eligible
organizations to coordinate, facilitate, encourage, and aid in the provision of taxpayer
assistance services deleted text end new text begin under this section new text end , the commissioner must provide public notice of the
grants in a timely manner so that the grant process is completed and grants are awarded by
October 1, in order for recipient deleted text begin eligible deleted text end organizations to adequately plan expenditures for
the filing season. At the time the commissioner provides public notice, the commissioner
must also notify deleted text begin eligible deleted text end organizations that received grants in the previous biennium.

Subd. 2.

deleted text begin Eligible organization deleted text end new text begin Definitions new text end .

deleted text begin "Eligible organization" means an organization
that meets the definition of eligible organization provided in section 7526A(e)(2)(B) of the
Internal Revenue Code.
deleted text end

new text begin (a) For the purposes of this section, the following terms have the meanings given.
new text end

new text begin (b) "Eligible credit" means a credit, refund, or other tax preference targeting low-income
taxpayers, including but not limited to the credits under sections 290.0661, 290.0671,
290.0674, and 290.0693, and chapter 290A.
new text end

new text begin (c) "Tax outreach organization" means a nonprofit organization or federally recognized
Indian Tribe with experience serving demographic groups or geographic regions that have
historically had low rates of participation in eligible credits.
new text end

new text begin (d) "Taxpayer assistance services" means accounting and tax preparation services
provided by volunteers to low-income, elderly, and disadvantaged Minnesota residents to
help them file federal and state income tax returns and Minnesota property tax refund claims
and to provide personal representation before the Department of Revenue and Internal
Revenue Service.
new text end

new text begin (e) "Volunteer taxpayer assistance organization" means an eligible organization qualifying
under section 7526A(e)(2)(B) of the Internal Revenue Code of 1986.
new text end

new text begin Subd. 3. new text end

new text begin Taxpayer assistance grants. new text end

new text begin The commissioner must annually make grants
to one or more volunteer taxpayer assistance organizations to coordinate, facilitate, encourage,
and aid in the provision of taxpayer assistance services.
new text end

new text begin Subd. 4. new text end

new text begin Tax credit outreach grants. new text end

new text begin The commissioner must annually make one or
more grants to tax outreach organizations and volunteer assistance organizations. Grants
provided under this subdivision must be used to:
new text end

new text begin (1) publicize and promote the availability of eligible credits to taxpayers likely to be
eligible for those credits; or
new text end

new text begin (2) provide taxpayer assistance services.
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. 2. new text begin APPROPRIATION; TAX CREDIT OUTREACH GRANTS; TAXPAYER
ASSISTANCE GRANTS.
new text end

new text begin (a) $1,000,000 in fiscal year 2025 is appropriated from the general fund to the
commissioner of revenue for tax credit outreach grants under Minnesota Statutes, section
270C.21, subdivision 4. This appropriation is in addition to the amount appropriated in
Laws 2023, chapter 64, article 7, section 30.
new text end

new text begin (b) $750,000 in fiscal year 2025 is appropriated from the general fund to the commissioner
of revenue for taxpayer assistance grants under Minnesota Statutes, section 270C.21,
subdivision 3. This appropriation is in addition to the amount appropriated for taxpayer
assistance in Laws 2023, chapter 62, article 1, section 14, subdivision 2.
new text end