Minnesota 2023-2024 Regular Session

Minnesota Senate Bill SF2921

Introduced
3/15/23  

Caption

Minnesota refund program establishment

Impact

The introduction of this bill marks a significant shift in state taxation policy and aims to ensure that Minnesota residents benefit from the state's financial surplus. By transferring a portion of the general fund balance to the Minnesota refund account, the bill guarantees that eligible taxpayers receive a refund based on their sales tax contributions. The proposed refunds are set at $500 for married joint filers and $250 for all other eligible individuals. This mechanism not only directly impacts taxpayers by providing financial relief but also fosters broader economic stability in the state.

Summary

SF2921 establishes the Minnesota refund program, designed to refund nonbusiness consumer sales taxes paid by individuals during previous calendar years. The intent is to create a fair mechanism for distributing refunds from the state budget surplus, particularly catering to those who were state residents and filed a Minnesota income tax return. The bill seeks to utilize data from the Minnesota tax incidence report to determine refund eligibility amounts accurately, as no practical mechanism currently exists for tracking the specific sales tax paid by each individual taxpayer.

Contention

However, the bill has sparked discussions around its implications for budgeting and the potential burden on the state's financial system. Some critics have raised concerns that the program may lead to unpredictable financial commitments for the state, especially if subsequent years do not see comparable surpluses. Additionally, the determination of eligibility and the process for issuing refunds may raise questions about fairness and transparency, especially for those who might feel excluded under the criteria set forth in the bill.

Companion Bills

MN HF3180

Similar To Minnesota refund program established, forecasted positive unrestricted general fund balances transferred to Minnesota refund account, criteria established for statutory sales tax refunds, reports required, and money appropriated.

Previously Filed As

MN HF3180

Minnesota refund program established, forecasted positive unrestricted general fund balances transferred to Minnesota refund account, criteria established for statutory sales tax refunds, reports required, and money appropriated.

MN SF4778

MinnesotaCare public option establishment, MinnesotaCare eligibility and various other provisions, and appropriation

MN SF3138

MinnesotaCare public option establishment

MN SF1911

Minnesota Civic Fund program establishment

MN SF2721

Minnesota Grape and Wine Council establishment

MN SF2493

Refundable child credit establishment

MN SF45

Property tax refund program conversion to a refundable income tax credit authorization

MN SF2045

Funding mechanism establishment for a long-term care access fund in the state treasury

MN SF2661

Minnesota Bitcoin Act

MN SF2753

Refundable sustainable aviation fuel tax credit and related sales tax exemption establishment

Similar Bills

MN HF3180

Minnesota refund program established, forecasted positive unrestricted general fund balances transferred to Minnesota refund account, criteria established for statutory sales tax refunds, reports required, and money appropriated.

MN SF73

Vehicle services fee dedication to the highway user tax distribution fund, driver and vehicle operating account repeal, and appropriation

MN HF2432

Judiciary, public safety, and corrections policy and finance bill.

MN HF2183

Driver and vehicle services provisions modified, full-service providers established, full-service providers allowed to provide copies of driver and vehicle records, filing fees increased for driver's license applications, requirement for new Minnesota residents to take written driver's license exam eliminated, access to driver and vehicle services information system modified, and money appropriated.

MN SF2099

Full-service providers establishment

MN HF1992

Transportation purposes funding provided, including Department of Transportation, Department of Public Safety, and Metropolitan Council activities; transportation policy changes made; noncompliant driver's license and Minnesota identification card requirements modified; reports required; bonds issued; and money appropriated.

MN SF1946

Transportation provisions modifications and appropriations

MN SF2640

Community first services and supports reimbursement rates modifications provision, certain consumer-directed community supports budgets increase provision, Minnesota Caregiver Defined Contribution Retirement Fund Trust establishment provision, and appropriation