Special property tax refund threshold lowering and maximum refund increase, excise tax on certain social media platform businesses establishment, onetime public safety aid for local and tribal governments establishment and appropriation

A bill for an act

relating to taxation; lowering the threshold and increasing the maximum refund

for the special property tax refund; establishing an excise tax on certain social

media platform businesses; establishing a onetime public safety aid for local and

Tribal governments; requiring a report; appropriating money; amending Minnesota

Statutes 2024, section 290A.04, subdivision 2h; proposing coding for new law in

Minnesota Statutes, chapter 295.

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

Section 1.

Minnesota Statutes 2024, section 290A.04, subdivision 2h, is amended to read:

Subd. 2h.

Additional refund.

(a) If the gross property taxes payable on a homestead

increase more than
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12
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eight
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percent over the property taxes payable in the prior year on the

same property that is owned and occupied by the same owner on January 2 of both years,

and the amount of that increase is $100 or more, a claimant who is a homeowner shall be

allowed an additional refund equal to 60 percent of the amount of the increase over the

greater of
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12
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eight
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percent of the prior year's property taxes payable or $100. This subdivision

shall not apply to any increase in the gross property taxes payable attributable to

improvements made to the homestead after the assessment date for the prior year's taxes.

The maximum refund allowed under this subdivision is
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$1,000
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$1,500
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.

(b) For purposes of this subdivision "gross property taxes payable" means property taxes

payable determined without regard to the refund allowed under this subdivision.

(c) In addition to the other proofs required by this chapter, each claimant under this

subdivision shall file with the property tax refund return a copy of the property tax statement

for taxes payable in the preceding year or other documents required by the commissioner.

(d) Upon request, the appropriate county official shall make available the names and

addresses of the property taxpayers who may be eligible for the additional property tax

refund under this section. The information shall be provided electronically. The county may

recover its costs by charging the person requesting the information the reasonable cost for

preparing the data. The information may not be used for any purpose other than for notifying

the homeowner of potential eligibility and assisting the homeowner, without charge, in

preparing a refund claim.

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EFFECTIVE DATE.

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This section is effective for refund claims based on taxes payable

in 2026 and thereafter.

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Sec. 2.

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[295.90] SOCIAL MEDIA DATA COLLECTION EXCISE TAX.

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Subdivision 1.

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Tax imposed.

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A tax is imposed on the collection of consumer data by a

social media platform business as provided under this section.

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Subd. 2.

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Rate of tax.

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The tax is imposed on social media platform businesses based on

the number of Minnesota social media platform consumers from whom a social media

platform business collects data within a month:

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Minnesota consumers

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Tax

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Fewer than or equal to 100,000

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Zero

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Over 100,000 but not more than 500,000

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$0.10 per month on the number of Minnesota

consumers over 100,000 but not more than

500,000

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Over 500,000 but not more than 1,000,000

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$40,000 plus $0.25 per month on the number

of Minnesota consumers over 500,000 but

not more than 1,000,000

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Over 1,000,000

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$165,000 plus $0.50 per month on the number

of Minnesota consumers over 1,000,000

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Subd. 3.

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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) "Consumer" means an individual who establishes an account on an app or website

owned by a social media platform business whose consumer data is collected by the social

media platform business, regardless of whether the individual is charged for establishing

the account.

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(d) "Consumer data" means any information that identifies, relates to, describes, is

capable of being associated with, or could reasonably be linked with a consumer, whether

directly submitted to the social media platform business by the consumer or derived from

other sources.

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(e) "Minnesota consumer" means a consumer who is a resident of Minnesota.

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(f) "Resident" has the meaning given in section 290.01, subdivision 7.

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(g) "Social media platform" has the meaning given in section 325M.31, paragraph (j).

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(h) "Social media platform business" means a for-profit entity that operates a social

media platform that engages, collects, maintains, uses, processes, sells, or shares consumer

data in support of the entity's business activities and collects consumer data on more than

100,000 individual Minnesota consumers in a month within the calendar year.

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Subd. 4.

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Consumers.

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(a) Until the contrary is established, it is presumed that a consumer

whose information on record with or available to a social media platform business indicates

a Minnesota home address, a Minnesota mailing address, or an internet protocol address

connected with a Minnesota location is a Minnesota consumer for purposes of this section.

The burden of proving that a consumer is not a Minnesota resident is on the social media

platform business.

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(b) A Minnesota consumer must be counted only once in the calculation of the monthly

tax imposed on a social media platform business.

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(c) Business entities that are part of a controlled group of corporations as defined in

section 1563(a) of the Internal Revenue Code must be treated as a single entity for purposes

of meeting the definition of a social media platform business under this section.

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(d) The single member of a single member limited liability company must be treated as

a consumer under this section.

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Subd. 5.

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Credit against tax paid to another jurisdiction.

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A social media platform

business that has paid tax under this section may claim a credit against the tax paid with

respect to a Minnesota consumer if another state imposes an excise tax identical to the tax

imposed under this section with respect to the same consumer.

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Subd. 6.

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Record keeping.

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A social media platform business must maintain records as

required by the commissioner.

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Subd. 7.

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Administration.

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Unless specifically provided otherwise, the audit, assessment,

refund, penalty, interest, enforcement, collection remedies, appeal, and administrative

provisions of chapters 270C and 289A that are applicable to taxes imposed under chapter

297A apply to the tax imposed under this section.

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Subd. 8.

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Returns; payment of tax.

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(a) A social media platform business must report

the tax on a return prescribed by the commissioner and must remit the tax in a form and

manner prescribed by the commissioner. The return and the tax must be filed and paid using

the filing cycle and due dates provided for taxes imposed under section 289A.20, subdivision

4, and chapter 297A.

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(b) Interest must be paid on an overpayment refunded or credited to the taxpayer from

the date of payment of the tax until the date the refund is paid or credited. For purposes of

this subdivision, the date of payment is the due date of the return or the date of actual

payment of the tax, whichever is later.

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Subd. 9.

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Deposit of revenues.

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The commissioner must deposit the revenues, including

penalties and interest, derived from the tax imposed by this section in the general fund.

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Subd. 10.

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Personal debt.

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The tax imposed by this section, and interest and penalties

imposed with respect to it, are a personal debt of the person required to file a return from

the time that the liability for it arises, irrespective of when the time for payment of the

liability occurs. In the case of a fiduciary, the debt must be that of the person in the person's

official or fiduciary capacity only, unless the person has voluntarily distributed the assets

held in that capacity without reserving sufficient assets to pay the tax, interest, and penalties,

in which event the person is personally liable for any deficiency.

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EFFECTIVE DATE.

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This section is effective for consumer data collected after

December 31, 2026.

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Sec. 3.
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2026 PUBLIC SAFETY AID.
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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) "Local unit" means (1) a town with a population of at least 10,000, or (2) a statutory

or home rule charter city.

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(d) "Population" means population estimates made or conducted by the United States

Bureau of the Census; the Metropolitan Council pursuant to Minnesota Statutes, section

473.24
; or the state demographer pursuant to Minnesota Statutes, section
4A.02
, paragraph

(d), whichever is the most recent estimate available as of January 1, 2026.

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(e) "Tribal governments" has the meaning given to "Minnesota Tribal governments" in

Minnesota Statutes, section
10.65, subdivision 2
, clause (4).

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(f) "Tribal population" means population estimates made or conducted by the United

States Bureau of the Census of the federally recognized American Indian reservations and

off-reservation trust lands in Minnesota, whichever is the most recent estimate available as

of January 1, 2026.

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Subd. 2.

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County aid.

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A county's public safety aid equals the sum of:

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(1) the product of (i) the county's population, and (ii) the county basic allowance; plus

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(2) the product of (i) the county's population minus the total population of every local

unit located in that county, and (ii) the county additional allowance.

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Subd. 3.

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Tribal government aid.

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A Tribal government's public safety aid equals the

sum of:

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(1) the product of (i) the Tribe's population, and (ii) the county basic allowance; plus

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(2) the product of (i) the Tribe's population, and (ii) the county additional allowance.

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Subd. 4.

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Local unit aid.

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A local unit's public safety aid equals the product of (1) the

local unit's population, and (2) the local unit allowance.

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Subd. 5.

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Commissioner to calculate allowances.

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(a) The commissioner must calculate

the county basic allowance so that the total amount of aid distributed under subdivision 2,

clause (1), and subdivision 3, clause (1), equals 70 percent of the amount appropriated for

aid to counties and Tribal governments under subdivision 8.

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(b) The commissioner must calculate the county additional allowance so that the total

amount of aid distributed under subdivision 2, clause (2), and subdivision 3, clause (2),

equals 30 percent of the amount appropriated for aid to counties and Tribal governments

under subdivision 8.

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(c) The commissioner must calculate the local unit allowance so that the total amount

of aid distributed under subdivision 4 equals the amount appropriated for aid to local units

under subdivision 8.

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Subd. 6.

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Eligible uses.

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(a) A county, Tribal government, or local unit must use the aid

under this section to provide public safety, including community violence prevention and

intervention programs; community engagement; mental health crisis response; victim

services; training programs; first responder wellness; fire, rescue, and emergency services

equipment; or other personnel or equipment costs.

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(b) Notwithstanding paragraph (a), a county, Tribal government, or local unit may not

apply the aid under this section toward:

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(1) an employer contribution to the public employees police and fire fund if the county,

Tribal government, or local unit received police state aid under Minnesota Statutes, chapter

477C, in calendar year 2025;

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(2) any costs associated with alleged wrongdoing or misconduct;

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(3) the purchase of an armored or tactical vehicle or substantially similar vehicle;

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(4) the purchase of tear gas, chemical munitions, or substantially similar items; or

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(5) the construction, reconstruction, remodeling, expansion, or improvement of a police

station, including related facilities. For purposes of this clause, "related facilities" includes

access roads, lighting, sidewalks, and utility components on or adjacent to the property on

which the police station is located that are necessary for safe access to and use of the building.

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Subd. 7.

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Certification; payment date.

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The commissioner must certify the amount of

public safety aid payable to each county, Tribal government, and local unit under this section

by September 1, 2026. The commissioner must pay public safety aid to each county, Tribal

government, and local unit by December 26, 2026.

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Subd. 8.

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Appropriation.

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(a) $....... is appropriated in fiscal year 2027 from the general

fund to the commissioner of revenue for public safety aid under this section. This is a onetime

appropriation.

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(b) Of the amount in paragraph (a), 30 percent is for aid to counties and Tribal

governments and 70 percent is for aid to local units.

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Subd. 9.

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Report.

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(a) By ....., 2027, each county, Tribal government, and local unit that

receives public safety aid under this section must report the following information to the

commissioner of public safety in the form and manner prescribed by the commissioner of

public safety:

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(1) the amount of aid received; and

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(2) how the aid was used or is intended to be used.

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(b) By ....., 2027, the commissioner of public safety must compile the information

received from counties, Tribal governments, and local units under paragraph (a) and submit

the compilation in a report to the chairs and ranking minority members of the legislative

committees with jurisdiction over public safety and taxes.

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EFFECTIVE DATE.

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This section is effective for aids payable in calendar year 2026.

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