Minnesota 2023-2024 Regular Session

Minnesota House Bill HF1588 Compare Versions

Only one version of the bill is available at this time.

Old	New	Differences
1	1	1.1 A bill for an act
2	2	1.2 relating to taxation; property tax refunds; increasing maximum refunds and
3	3	1.3 expanding eligibility for refunds; expanding the exemption amount for senior
4	4	1.4 claimants and claimants with a disability; amending Minnesota Statutes 2022,
5	5	1.5 sections 290A.03, subdivision 3; 290A.04, subdivisions 2, 4.
6	6	1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
7	7	1.7 Section 1. Minnesota Statutes 2022, section 290A.03, subdivision 3, is amended to read:
8	8	1.8 Subd. 3.Income.(a) "Income" means the sum of the following:
9	9	1.9 (1) federal adjusted gross income as defined in the Internal Revenue Code; and
10	10	1.10 (2) the sum of the following amounts to the extent not included in clause (1):
11	11	1.11 (i) all nontaxable income;
12	12	1.12 (ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
13	13	1.13paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
14	14	1.14carryover allowed under section 469(b) of the Internal Revenue Code;
15	15	1.15 (iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
16	16	1.16solvent individual excluded from gross income under section 108(g) of the Internal Revenue
17	17	1.17Code;
18	18	1.18 (iv) cash public assistance and relief;
19	19	1.19 (v) any pension or annuity (including railroad retirement benefits, all payments received
20	20	1.20under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
21	21	1.21which was not exclusively funded by the claimant or spouse, or which was funded exclusively
22	22	1Section 1.
23	23	REVISOR EAP/BM 23-0124212/28/22
24	24	State of Minnesota
25	25	This Document can be made available
26	26	in alternative formats upon request
27	27	HOUSE OF REPRESENTATIVES
28	28	H. F. No. 1588
29	29	NINETY-THIRD SESSION
30	30	Authored by Bahner, Youakim, Klevorn, Lislegard and Tabke02/13/2023
31	31	The bill was read for the first time and referred to the Committee on Taxes 2.1by the claimant or spouse and which funding payments were excluded from federal adjusted
32	32	2.2gross income in the years when the payments were made;
33	33	2.3 (vi) interest received from the federal or a state government or any instrumentality or
34	34	2.4political subdivision thereof;
35	35	2.5 (vii) workers' compensation;
36	36	2.6 (viii) nontaxable strike benefits;
37	37	2.7 (ix) the gross amounts of payments received in the nature of disability income or sick
38	38	2.8pay as a result of accident, sickness, or other disability, whether funded through insurance
39	39	2.9or otherwise;
40	40	2.10 (x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
41	41	2.111986, as amended through December 31, 1995;
42	42	2.12 (xi) contributions made by the claimant to an individual retirement account, including
43	43	2.13a qualified voluntary employee contribution; simplified employee pension plan;
44	44	2.14self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
45	45	2.15the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
46	46	2.16Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for
47	47	2.17the claimant and spouse;
48	48	2.18 (xii) to the extent not included in federal adjusted gross income, distributions received
49	49	2.19by the claimant or spouse from a traditional or Roth style retirement account or plan;
50	50	2.20 (xiii) nontaxable scholarship or fellowship grants;
51	51	2.21 (xiv) alimony received to the extent not included in the recipient's income;
52	52	2.22 (xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
53	53	2.23Code;
54	54	2.24 (xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue
55	55	2.25Code; and
56	56	2.26 (xvii) the amount deducted for certain expenses of elementary and secondary school
57	57	2.27teachers under section 62(a)(2)(D) of the Internal Revenue Code.
58	58	2.28 In the case of an individual who files an income tax return on a fiscal year basis, the
59	59	2.29term "federal adjusted gross income" shall mean federal adjusted gross income reflected in
60	60	2.30the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced
61	61	2.31by the amount of a net operating loss carryback or carryforward or a capital loss carryback
62	62	2.32or carryforward allowed for the year.
63	63	2Section 1.
64	64	REVISOR EAP/BM 23-0124212/28/22 3.1 (b) "Income" does not include:
65	65	3.2 (1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
66	66	3.3 (2) amounts of any pension or annuity which was exclusively funded by the claimant
67	67	3.4or spouse and which funding payments were not excluded from federal adjusted gross
68	68	3.5income in the years when the payments were made;
69	69	3.6 (3) to the extent included in federal adjusted gross income, amounts contributed by the
70	70	3.7claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed
71	71	3.8the retirement base amount reduced by the amount of contributions excluded from federal
72	72	3.9adjusted gross income, but not less than zero;
73	73	3.10 (4) surplus food or other relief in kind supplied by a governmental agency;
74	74	3.11 (5) relief granted under this chapter;
75	75	3.12 (6) child support payments received under a temporary or final decree of dissolution or
76	76	3.13legal separation;
77	77	3.14 (7) restitution payments received by eligible individuals and excludable interest as
78	78	3.15defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
79	79	3.16Public Law 107-16;
80	80	3.17 (8) alimony paid; or
81	81	3.18 (9) veterans disability compensation paid under title 38 of the United States Code.
82	82	3.19 (c) The sum of the following amounts may be subtracted from income:
83	83	3.20 (1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
84	84	3.21 (2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
85	85	3.22 (3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
86	86	3.23 (4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
87	87	3.24 (5) for the claimant's fifth dependent, the exemption amount; and
88	88	3.25 (6) if the claimant or claimant's spouse had a disability or attained the age of 65 on or
89	89	3.26before December 31 of the year for which the taxes were levied or rent paid, the exemption
90	90	3.27amount multiplied by 1.5.
91	91	3.28 (d) For purposes of this subdivision, the following terms have the meanings given:
92	92	3.29 (1) "exemption amount" means the exemption amount under section 290.0121,
93	93	3.30subdivision 1, paragraph (b), for the taxable year for which the income is reported;
94	94	3Section 1.
95	95	REVISOR EAP/BM 23-0124212/28/22 4.1 (2) "retirement base amount" means the deductible amount for the taxable year for the
96	96	4.2claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for
97	97	4.3inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard
98	98	4.4to whether the claimant or spouse claimed a deduction; and
99	99	4.5 (3) "traditional or Roth style retirement account or plan" means retirement plans under
100	100	4.6sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.
101	101	4.7 EFFECTIVE DATE.This section is effective beginning with claims based on rent paid
102	102	4.8in 2023 and property taxes payable in 2024.
103	103	4.9 Sec. 2. Minnesota Statutes 2022, section 290A.04, subdivision 2, is amended to read:
104	104	4.10 Subd. 2.Homeowners; homestead credit refund.A claimant whose property taxes
105	105	4.11payable are in excess of the percentage of the household income stated below shall pay an
106	106	4.12amount equal to the percent of income shown for the appropriate household income level
107	107	4.13along with the percent to be paid by the claimant of the remaining amount of property taxes
108	108	4.14payable. The state refund equals the amount of property taxes payable that remain, up to
109	109	4.15the state refund amount shown below.
110	110	4.16 Maximum
111	111	State
112	112	Refund
113	113	4.17 Percent Paid by
114	114	ClaimantPercent of Income4.18 Household Income
115	115	2,770
116	116	3,560$15 percent1.0 percent
117	117	4.19 $0 to 1,739
118	118	4.20 $0 to $1,920
119	119	2,770
120	120	3,560$15 percent1.1 percent
121	121	4.21 1,740 to 3,459
122	122	4.22 $1,921 to $3,820
123	123	2,770
124	124	3,560$15 percent1.2 percent
125	125	4.23 3,460 to 5,239
126	126	4.24 $3,821 to $5,790
127	127	2,770
128	128	3,560$20 percent1.3 percent
129	129	4.25 5,240 to 6,989
130	130	4.26 $5,791 to $7,730
131	131	2,770
132	132	3,560$20 percent1.4 percent
133	133	4.27 6,990 to 8,719
134	134	4.28 $7,731 to $9,640
135	135	2,770
136	136	3,560$20 percent1.5 percent
137	137	4.29 8,720 to 12,219
138	138	4.30 $9,641 to $13,510
139	139	2,770
140	140	3,560$20 percent1.6 percent
141	141	4.31 12,220 to 13,949
142	142	4.32 $13,511 to $15,420
143	143	2,770
144	144	3,560$20 percent1.7 percent
145	145	4.33 13,950 to 15,709
146	146	4.34 $15,421 to $17,370
147	147	2,770
148	148	3,560$20 percent1.8 percent
149	149	4.35 15,710 to 17,449
150	150	4.36 $17,371 to $19,290
151	151	2,770
152	152	3,560$25 percent1.9 percent
153	153	4.37 17,450 to 19,179
154	154	4.38 $19,291 to $21,200
155	155	4Sec. 2.
156	156	REVISOR EAP/BM 23-0124212/28/22 2,770
157	157	3,560$25 percent2.0 percent
158	158	5.1 19,180 to 24,429
159	159	5.2 $21,201 to $27,010
160	160	2,770
161	161	3,560$30 percent2.0 percent
162	162	5.3 24,430 to 26,169
163	163	5.4 $27,011 to $28,930
164	164	2,770
165	165	3,560$30 percent2.0 percent
166	166	5.5 26,170 to 29,669
167	167	5.6 $28,931 to $32,800
168	168	2,770
169	169	3,560$35 percent2.0 percent
170	170	5.7 29,670 to 41,859
171	171	5.8 $32,801 to $46,270
172	172	2,240
173	173	2,980$35 percent2.0 percent
174	174	5.9 41,860 to 61,049
175	175	5.10 $46,271 to $67,490
176	176	1,960
177	177	2,670$40 percent2.0 percent
178	178	5.11 61,050 to 69,769
179	179	5.12 $67,491 to $77,130
180	180	1,620
181	181	2,290$40 percent2.1 percent
182	182	5.13 69,770 to 78,499
183	183	5.14 $77,131 to $86,780
184	184	1,450
185	185	2,100$40 percent2.2 percent
186	186	5.15 78,500 to 87,219
187	187	5.16 $86,781 to $96,420
188	188	1,270
189	189	1,900$40 percent2.3 percent
190	190	5.17 87,220 to 95,939
191	191	5.18 $96,421 to $106,060
192	192	1,070
193	193	1,680$45 percent2.4 percent
194	194	5.19 95,940 to 101,179
195	195	5.20 $106,061 to $111,850
196	196	890
197	197	1,480$45 percent2.5 percent
198	198	5.21 101,180 to 104,689
199	199	5.22 $111,851 to $115,730
200	200	730
201	201	1,310$50 percent2.5 percent
202	202	5.23 104,690 to 108,919
203	203	5.24 $115,731 to $120,410
204	204	540
205	205	1,100$50 percent2.5 percent
206	206	5.25 108,920 to 113,149
207	207	5.26 $120,411 to $125,080
208	208	850$50 percent2.6 percent5.27 $125,081 to $135,000
209	209	600$50 percent2.7 percent5.28 $135,001 to $145,000
210	210	350$50 percent2.8 percent5.29 $145,001 to $155,000
211	211	5.30 The payment made to a claimant shall be the amount of the state refund calculated under
212	212	5.31this subdivision. No payment is allowed if the claimant's household income is $113,150
213	213	5.32$155,001 or more.
214	214	5.33 EFFECTIVE DATE.This section is effective for claims based on property taxes payable
215	215	5.34in 2024 and following years.
216	216	5.35 Sec. 3. Minnesota Statutes 2022, section 290A.04, subdivision 4, is amended to read:
217	217	5.36 Subd. 4.Inflation adjustment.The commissioner shall annually adjust the dollar
218	218	5.37amounts of the income thresholds and the maximum refunds under subdivisions 2 and 2a
219	219	5.38as provided in section 270C.22. The statutory year for subdivision 2 is 2023. The statutory
220	220	5.39year for subdivision 2a is 2018.
221	221	5Sec. 3.
222	222	REVISOR EAP/BM 23-0124212/28/22 6.1 EFFECTIVE DATE.This section is effective for claims based on property taxes payable
223	223	6.2in 2025 and following years.
224	224	6Sec. 3.
225	225	REVISOR EAP/BM 23-0124212/28/22