Aids to local governments; new fifth tier individual income tax rate established, and local government aid and county program aid appropriations increased.

This bill establishes a new fifth tax bracket for Minnesota residents, raising the income threshold for the highest tax rate from $1 million to $1.085 million for married couples filing jointly. The legislation also increases the income limits for all existing tax brackets and introduces a new 10.85 percent tax rate for income exceeding the new highest threshold. Additionally, the bill provides increased funding to local governments and counties to offset the revenue changes. These adjustments are designed to take effect for taxable years beginning after December 31, 2025.