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HF4950 • 2026

Tax on certain individuals and organizations convicted of and benefiting from fraud established.

Tax on certain individuals and organizations convicted of and benefiting from fraud established.

Taxes
Passed Legislature

This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.

Sponsor
Anderson, P. E., Davids, Elkins, Norris, Swedzinski, Joy, Wiener, Roach, Johnson, W., Warwas, Witte, Murphy, Schwartz, Harder, Robbins, Greene, Greenman, Smith, Kraft, Luger-Nikolai, Hollins, Lee, K., Curran, Rymer, Perryman, Bakeberg, Knudsen, Altendorf, Fogelman, Niska, Jacob, Myers, Rarick, Tabke, Gordon
Last action
2026-04-13
Official status
Introduction and first reading, referred to Taxes
Effective date
Not listed

Plain English Breakdown

Using official source text because the generated explanation was unavailable or could not be confirmed against the official bill text.

Tax on certain individuals and organizations convicted of and benefiting from fraud established.

Tax on certain individuals and organizations convicted of and benefiting from fraud established.

What This Bill Does

  • Tax on certain individuals and organizations convicted of and benefiting from fraud established.

Limits and Unknowns

  • This entry is temporarily using official source text because the generated explanation could not be confirmed against the official bill text during the last sync.

Bill History

  1. 2026-04-13 House

    Introduction and first reading, referred to Taxes

Official Summary Text

Tax on certain individuals and organizations convicted of and benefiting from fraud established.

Current Bill Text

Read the full stored bill text 
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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Subdivision 1.

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Definitions.

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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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Subd. 2.

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Tax imposed.

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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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Subd. 3.

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Role of commissioner.

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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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Subd. 4.

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Deposit of money.

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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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EFFECTIVE DATE.

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This section is effective retroactively for determinations of fraud

made after December 31, 2019.

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