Plain English Breakdown
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HF5040 • 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.
Bill History
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2026-04-20
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. new text begin [295.90] TAX ON AMOUNTS OBTAINED THROUGH FRAUD. new text end new text begin Subdivision 1. new text end new text begin Definitions. new text end new text begin (a) For purposes of this section, the following terms have the meanings given. new text end new text begin (b) "Commissioner" means the commissioner of revenue. new text end new text begin (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. new text end new text begin Subd. 2. new text end new text begin Tax imposed. new text end new text begin (a) A tax equal to 100 percent is imposed on the amount obtained by fraud: new text end new text begin (1) by any individual or organization convicted by a state or federal court of fraud; new text end new text begin (2) by any individual or organization that the commissioner has determined to be obtained by fraud; new text end new text begin (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 new text end new text begin (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. new text end new text begin (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). new text end new text begin Subd. 3. new text end new text begin Role of commissioner. new text end new text begin (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. new text end new text begin (b) The commissioner must establish the schedule for payment and means of enforcement of the tax imposed under this section. new text end new text begin (c) The provisions of section 270C.35 apply to appeals of an order assessing the tax imposed under this section. new text end new text begin Subd. 4. new text end new text begin Deposit of money. new text end new text begin (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. new text end new text begin (b) The tax relief account is established in the special revenue fund. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective retroactively for determinations of fraud made after December 31, 2019. new text end