Since January 1, 1996, the State of Minnesota has taxed the income, both ordinary and capital gains, of what Minn. Stat. § 290.01, subd. 7b(a) defines as a “resident trust.” Affirming a 2017 decision of the Minnesota Tax Court, the Minnesota Supreme Court, in Fielding vs. Commissioner of Revenue (A17-1777, July 28, 2018), ruled that, as applied to the four trusts at issue in the case, Minn. Stat. § 290.01, subd. 7b(a) is unconstitutional in violation of the due process clauses of both the U.S. and Minnesota Constitutions.

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