MN HF2876

Commissioner of Revenue must establish a private letter ruling program by January 1, 2017, allowing taxpayers to request written guidance on how Minnesota tax law applies to their specific transactions or situations.

Taxpayers may be charged up to $1,000 for each private letter ruling, and the commissioner must issue a ruling within 90 days or refund the application fee.

Private letter rulings are binding only on the specific taxpayer who requested them if facts remain materially unchanged, applicable law has not changed, and the taxpayer acted in good faith.

Commissioner is prohibited from assessing additional sales, corporate, and income taxes if the taxpayer's reporting was consistent with prior practices that were fully disclosed and written approval was given by the commissioner, unless law or the commissioner's position changes.

An appropriation from the general fund in fiscal year 2017 is made to the Commissioner of Revenue for establishing and administering the private letter ruling program.