Minnesota fraud tax: Lawmakers push for 100% repayment of stolen funds

MN lawmakers propose 100% tax on stolen state money

Minnesota Republicans spoke Wednesday on a bipartisan bill that is set to be introduced that would establish a 100% tax on money obtained by organizations or people who are convicted of stealing state money through fraud. 

ST. PAUL, Minn. (FOX 9) - Lawmakers from both parties are backing a new bill aimed at reclaiming money stolen from state programs through fraud. 

Minnesota's push to recover stolen funds

What we know:

The "Take it Back Act" would force anyone convicted of fraud — or determined by the Minnesota Department of Revenue to have committed fraud since the end of 2019 — to pay back all stolen money as a tax. The money would then go into a tax relief account to help Minnesotans with their income or property taxes.

The bill covers not just those convicted, but also anyone who benefited financially as an accomplice to fraud. For example, someone like Aimee Bock, who was convicted in the Feeding Our Future case, would have to pay back all fraudulent funds in addition to any restitution already owed.

Dig deeper:

The bill has strong support from both DFL and GOP lawmakers, with DFL Taxes Chair Sen. Ann Rest leading the effort in the Senate.

Lawmakers say the approach would help the state recover as much money as possible from people who defrauded state programs.

What's next:

The legislation was introduced late last week in both the Minnesota House and Senate, but will need to act quickly to become law.

The Senate taxes committee has approved the bill to move directly to the Senate floor for a vote. In the House, the bill is set for a hearing in the House Taxes Committee on April 30.

Lawmakers have until May 19 to finalize the proposal before the session adjourns.

Minnesota Governor Tim Walz has not yet publicly shared an opinion on the proposal.