Minnesota would tax individual and trust wealth above $10 million

Individuals and trusts would pay an annual tax of 1% on taxable wealth above $10 million. It would cover individuals and trusts whose Minnesota property value, minus all debts and financial obligations, exceeds $10 million. Real estate would count where it is located, and physical property where it is normally kept. Nonphysical property would count where the individual has their permanent home or the trust is a resident. Property values would follow federal estate valuation rules. The tax would be added to other taxes identified in the bill. If enacted, the tax would apply to tax years beginning after December 31, 2025.

Nonresidents would determine where certain business-held property counts as though they owned it directly. The rule would cover nonresidents who own interests in businesses classified as pass-through entities under Minnesota law and holding real estate or physical property. When others also own the business, the taxpayer’s share of its capital ownership would determine the share of property counted. If enacted, this ownership rule would apply to tax years beginning after December 31, 2025.