Minnesota bill would tax fraudsters 100% of stolen funds
Minnesota lawmakers this week unveiled a bill that would tax people convicted of fraud at 100% of the value of the funds they stole, effectively forcing full repayment to victims and state recovery programs.
The proposal would impose a 100% tax on proceeds tied to fraud convictions and direct the money toward restitution or state recovery efforts. Backers say it would strengthen accountability and deter fraud, while critics warn it could complicate restitution and raise legal questions.
The idea follows growing frustration among prosecutors and victims about the difficulty of collecting stolen money under current restitution rules. Lawmakers framed the bill as a legislative fix to gaps that often leave victims unpaid even after criminal convictions.
The measure must still pass both legislative chambers and win the governor's signature to become law, and lawmakers will need to address enforcement, overlap with criminal sentences, and how recovered funds would be tracked and distributed.
📌 Key Facts
- The "Take it Back Act" would impose a 100% tax on money stolen from Minnesota state programs through fraud.
- It covers those convicted of fraud or found by the Department of Revenue to have committed fraud since late 2019, as well as financial accomplices.
- Recovered money would go into a tax‑relief account to help reduce Minnesotans' income or property taxes.
- The Senate Taxes Committee has sent the bill directly to the floor; the House Taxes Committee will hear it April 30, with a hard May 19 session deadline.
- Gov. Tim Walz has not yet stated whether he supports or opposes the measure.
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