Minnesotans shouldn’t have to guess how tax laws apply to their situation. The Senate Taxes Committee on Wednesday heard a new bill (SF783) by Senator Carla Nelson (R-Rochester) that would allow taxpayers to request legally binding answers before making financial decisions.

The Nelson bill creates a Private Letter Ruling (PLR) program, where taxpayers can request an official written ruling on how tax laws apply to their situation. The bill would reduce tax surprises, help Minnesotans avoid costly mistakes, and make it easier for families and businesses to plan for the future.

“This bill is about fairness and transparency,” Nelson said. “I often hear from my constituents that our tax system is too complicated and confusing. We still have work to do to address that, but in the meantime, people should be able to ask the state how a tax law applies to them and get a clear, reliable answer.”

• In each ruling, the commissioner must include an explanation of their reasoning. The ruling would be legally binding. As long as the taxpayer provided accurate information, the state must follow its guidance.
• The Department of Revenue must respond within 90 days or refund the application fee.
• Rulings will be published online (without identifying details) so others can learn from similar cases.
• The bill also requires regular reports to lawmakers to ensure transparency and accountability.

The bill was laid over and will be considered for a larger tax bill later in session. If passed, the program would launch by January 1, 2026.