Taxes

This bill requires pharmaceutical manufacturers in Minnesota to add back certain direct-to-consumer advertising expenses when calculating their state income and franchise taxes. It specifically targets marketing costs for prescription drugs and biologics that are directed at consumers through media channels like television, radio, print, and social media. The legislation does not change how these companies deduct these costs for federal tax purposes but instead prevents them from using those same deductions to lower their Minnesota tax liability. These changes will take effect for tax years beginning after December 31, 2026.

This bill proposes reducing state financial aid by 10% for any Minnesota county or city that displays a state flag different from the officially certified design. To enforce this, the state's commissioner of revenue would cut aid payments for the year following any instance where a local government uses the incorrect flag, and affected localities must notify the commissioner annually by December 31. The penalty applies specifically to aid distributed under state statutes and would only take effect starting with payments made in 2027.

This bill authorizes the city of La Crescent to impose a local sales and use tax, subject to approval by voters in a separate election. The collected tax revenue would be used to cover the costs of running the tax and to fund up to $4 million for renovating the city's regional ice arena, which includes replacing the ice system and adding a rooftop solar energy setup. The legislation also allows the city to issue up to $4 million in bonds to help pay for these construction projects without needing a separate voter approval for the debt. If the tax generates enough money to cover the project costs before a set time limit, the tax would end early, with any leftover funds returning to the city's general budget.

This bill prohibits local governments in Minnesota from requiring rental licenses, registrations, or inspections for homesteads occupied by relatives of the property owner. It defines "relative" broadly to include parents, children, siblings, grandparents, grandchildren, aunts, uncles, and cousins, covering relationships formed by blood or marriage. The legislation allows these relatives to live in the home without facing additional regulatory burdens typically associated with renting out a property, while still maintaining the homestead's tax benefits. Additionally, the bill clarifies that neither the owner nor the relative occupant can claim a specific property tax refund for these relative-occupied homesteads.

This bill proposes increasing the Minnesota child credit from $1,750 to $2,000 for each qualifying child. It also establishes a new rule requiring the state revenue commissioner to adjust this credit amount annually for inflation starting in 2026, with adjustments rounded to the nearest $60. These changes will apply to tax years beginning after December 31, 2025, directly affecting Minnesota residents who claim the credit on their state income tax returns.