MN SF4078

Establishes a Tax Expenditure Review Commission consisting of eight legislators (two majority and minority members from each chamber) plus ex officio members from the Department of Revenue and relevant tax committee chairs to review Minnesota's tax expenditures on a rotating basis, with each tax reviewed at least once every eight years.

Requires new or renewed tax expenditures to include a statement of purpose, measurable effectiveness standards, and an expiration date no more than eight years from enactment, effective with the 2021 legislative session.

Commission must conduct minimum reviews including revenue impact estimates, effectiveness analysis, comparison to direct expenditures, incidence analysis for significant tax expenditures, and proposed efficiency modifications, with public hearings held by December 1 and annual reports due December 15.

Requires the governor's budget to include performance data and recommendations on whether each tax expenditure in effect should be continued or discontinued, with fiscal and policy impact descriptions.

Modifies Department of Revenue tax expenditure report deadline from February to November 1 of even-numbered years and requires reports to include expenditure purpose, incidence data for significant expenditures, and revenue-neutral tax rate reduction amounts.