HF 4616

03/02/26   REVISOR  EAP/BH  26-07502
This Document can be made available
in alternative formats upon request  State of Minnesota
  HOUSE OF REPRESENTATIVES
  NINETY-FOURTH SESSION
  H. F. No.   4616
03/25/2026     Authored by Gomez; Lee, K.; Kozlowski; Greenman; Finke and others
  The bill was read for the first time and referred to the Committee on Taxes
1.1A bill for an act
1.2relating to taxation; establishing a Minnesota wealth tax; proposing coding for
1.3new law in Minnesota Statutes, chapter 290.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5Section 1. [290.055] WEALTH TAX.
1.6Subdivision 1. Definitions. (a) For purposes of this section, the following terms have
1.7the meanings given.
1.8(b) "Pass-through entity" has the meaning given in section 291.005, subdivision 1.
1.9(c) "Situs of property" means, with respect to:
1.10(1) real property, the state or country in which it is located;
1.11(2) tangible personal property, the state or country in which it is normally kept or located;
1.12and
1.13(3) intangible personal property, the state or country in which an individual taxpayer is
1.14domiciled or the state of which a trust is a resident.
1.15(d) "Taxable wealth" means:
1.16(1) the value of all of a taxpayer's property, real or personal, tangible or intangible, but
1.17excluding property with a situs outside of Minnesota; minus
1.18(2) the sum of all debts and financial obligations owed by the taxpayer.
1.19Subd. 2. Tax imposed. A tax is annually imposed equal to one percent of the taxable
1.20wealth of an individual or trust in excess of $10,000,000.
Section 1.  1
03/02/26   REVISOR  EAP/BH  26-07502
2.1      Subd. 3. Taxes imposed are in addition to other taxes. The tax imposed under this
2.2  section is in addition to the tax imposed under chapter 291; section 289A.08, subdivision
2.3  7; and any other tax imposed under this chapter.
2.4      Subd. 4. Property situs; nonresident ownership interests in pass-through
2.5  businesses. For a nonresident taxpayer with an ownership interest in a pass-through entity
2.6  with assets that include real or tangible personal property, situs of the real or tangible personal
2.7  property is determined as if the pass-through entity does not exist and the real or tangible
2.8  personal property is personally owned by the taxpayer. If the pass-through entity is owned
2.9  by a person or persons in addition to the taxpayer, ownership of the property is attributed
2.10 to the taxpayer in proportion to the taxpayer's capital ownership share of the pass-through
2.11 entity.
2.12     Subd. 5. Determination of property values. The value of a taxpayer's property must
2.13 be calculated in the same manner as the value of a gross estate under section 2031 of the
2.14 Internal Revenue Code.
2.15     EFFECTIVE DATE. This section is effective for taxable years beginning after December
2.16 31, 2025.
Section 1.  2