Rep. Davids Co-Authors “Take It Back Act”

Bill would force fraudsters to pay 100% fraud tax

ST. PAUL – In an effort to recoup some of the money stolen in fraud, State Representative Greg Davids (R-Preston) is co-authoring legislation that would force criminals to pay a 100% fraud tax on the amount they stole from Minnesota’s taxpayers.

“It’s high time the people who are ripping this state off are held accountable,” Davids said. “Residents are tired of seeing convicted fraudsters only being required to pay restitution that amounts to a small fraction of what they stole from Minnesota.”  

Davids said the 100% tax would apply to any person or organization convicted of fraud or who receives compensation in exchange for participating in fraudulent activity. The tax applies in addition to the court-ordered restitution that they are already required to pay.

Davids noted the tax collected would then be put into a tax relief account, where it could only be used for income or property tax relief.

Davids is optimistic about its passage. The bill currently has 35 authors in the House, and roughly a third of its authors are Democrats.

The proposal is expected to be debated in the House Taxes Committee, which Davids co-chairs, on April 30.