S.F. No. 5085 Summary

• Increases tax preparer penalties up to $1,000 per violation and adds authority for administrative cease and desist orders with extended hearing timelines (from 10 to 30 days for issuing hearing notices and administrative law judge reports).

• Changes qualified heir filing requirement from two separate returns to one return attesting no disposition or cessation of agricultural property occurred.

• Updates Internal Revenue Code reference date to May 1, 2023 for individual income tax and corporate franchise tax calculations, effective retroactively for taxable years beginning after December 31, 2022.

• Provides liability relief for marketplace providers from sales and use tax collection failures if errors resulted from incorrect information provided by marketplace sellers, with sole liability shifting to the marketplace seller (effective for sales after June 30, 2024).

• Modifies local affordable housing aid distribution by requiring tier I cities and counties to submit annual reports to Minnesota Housing Finance Agency and establishing repayment requirements for unspent or misused funds (effective for aids payable in 2024 and thereafter).