Tax Expenditure Review Commission requirements modified, and legislative requirements for new or renewed tax expenditures repealed.

2025-2026 Regular Session Introduced by Esther Agbaje and 2 co-sponsors

HF 1106 reshapes tax expenditure oversight by altering the Tax Expenditure Review Commission and repealing legislative approval rules for new/renewed tax expenditures.

Author added Elkins

#statecouncilsandcommissions #taxation

Summary of HF 1106

HF 1106 is a Minnesota House bill that focuses on tax expenditure oversight and legislative requirements related to tax expenditures. The bill’s title indicates two main thrusts: (1) modifying the Tax Expenditure Review Commission requirements, and (2) repealing legislative requirements for new or renewed tax expenditures.

Purpose and intent

To change how the Tax Expenditure Review Commission operates and what it must do.

To remove or repeal existing legislative requirements for approving or renewing tax expenditures, potentially reducing the level of legislative intervention in the creation and renewal of tax expenditures.

Note: Specific details of the changes (e.g., commission duties, composition, reporting timelines) are not provided in the information available here. The exact provisions would be found in the bill text and any accompanying fiscal or policy summaries.

Key provisions (as implied by the title)

Modify Tax Expenditure Review Commission requirements: The bill would alter one or more aspects of the commission’s mandate. This could involve changes to duties, reporting requirements, review frequency, scope of expenditures reviewed, or membership and appointment processes. The precise changes require the bill’s text.

Repeal legislative requirements for new or renewed tax expenditures: The bill would remove existing statutory obligations that govern the creation and renewal of tax expenditures. This may affect criteria, approvals, sunset provisions, or transparency/reporting requirements currently imposed on new or extended tax expenditures.

Who would be affected

Tax Expenditure Review Commission (or its Minnesota equivalent): adjustments to mandate and operations.

State agencies administering tax expenditures: impacted by any changes in review requirements and oversight.

Legislators and staff: changes to the process by which new or renewed tax expenditures are considered or approved.

Taxpayers and beneficiaries of tax expenditures: indirect effects through potentially altered oversight, transparency, and fiscal consequences.

Procedural and timeline aspects

Introduced: February 19, 2025.

Referral: Referred to the Taxes committee on introduction.

Status update: On March 27, 2025, the author was updated to Elkins.

Related bill: SF 45 is the companion bill in the Senate.

Next steps: Typically, the bill would advance to committee hearings, potential amendments, floor votes, and ultimately reconciliation with the Senate counterpart if proceeding through the usual legislative process.

Potential impact and considerations

Oversight and transparency: Repealing legislative requirements for new/renewed tax expenditures could reduce legislative scrutiny and public reporting on tax expenditures.

Fiscal impact: Changes to oversight may affect budgeting and revenue projections tied to tax expenditures; a fiscal note (if provided) would detail any anticipated costs or savings.

Administrative efficiency: Modifying commission requirements could streamline or reorient review processes, potentially speeding decisions but also altering the rigor of oversight.

Next steps for readers

Review the full bill text and fiscal note to understand the exact provisions and their implications.

Compare HF 1106 with its Senate companion SF 45 to gauge alignment and potential conference outcomes.

Monitor committee hearings and votes in the House Taxes committee for concrete language and amendments.