Minnesota 2023-2024 Regular Session

Minnesota Senate Bill SF271 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	23-01242 as introduced12/28/22 REVISOR EAP/BM
24	24	SENATE
25	25	STATE OF MINNESOTA
26	26	S.F. No. 271NINETY-THIRD SESSION
27	27	(SENATE AUTHORS: KLEIN, Nelson, Gustafson, Rest and Dziedzic)
28	28	OFFICIAL STATUSD-PGDATE
29	29	Introduction and first reading01/12/2023
30	30	Referred to Taxes 2.1by the claimant or spouse and which funding payments were excluded from federal adjusted
31	31	2.2gross income in the years when the payments were made;
32	32	2.3 (vi) interest received from the federal or a state government or any instrumentality or
33	33	2.4political subdivision thereof;
34	34	2.5 (vii) workers' compensation;
35	35	2.6 (viii) nontaxable strike benefits;
36	36	2.7 (ix) the gross amounts of payments received in the nature of disability income or sick
37	37	2.8pay as a result of accident, sickness, or other disability, whether funded through insurance
38	38	2.9or otherwise;
39	39	2.10 (x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
40	40	2.111986, as amended through December 31, 1995;
41	41	2.12 (xi) contributions made by the claimant to an individual retirement account, including
42	42	2.13a qualified voluntary employee contribution; simplified employee pension plan;
43	43	2.14self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
44	44	2.15the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
45	45	2.16Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for
46	46	2.17the claimant and spouse;
47	47	2.18 (xii) to the extent not included in federal adjusted gross income, distributions received
48	48	2.19by the claimant or spouse from a traditional or Roth style retirement account or plan;
49	49	2.20 (xiii) nontaxable scholarship or fellowship grants;
50	50	2.21 (xiv) alimony received to the extent not included in the recipient's income;
51	51	2.22 (xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
52	52	2.23Code;
53	53	2.24 (xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue
54	54	2.25Code; and
55	55	2.26 (xvii) the amount deducted for certain expenses of elementary and secondary school
56	56	2.27teachers under section 62(a)(2)(D) of the Internal Revenue Code.
57	57	2.28 In the case of an individual who files an income tax return on a fiscal year basis, the
58	58	2.29term "federal adjusted gross income" shall mean federal adjusted gross income reflected in
59	59	2.30the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced
60	60	2.31by the amount of a net operating loss carryback or carryforward or a capital loss carryback
61	61	2.32or carryforward allowed for the year.
62	62	2Section 1.
63	63	23-01242 as introduced12/28/22 REVISOR EAP/BM 3.1 (b) "Income" does not include:
64	64	3.2 (1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
65	65	3.3 (2) amounts of any pension or annuity which was exclusively funded by the claimant
66	66	3.4or spouse and which funding payments were not excluded from federal adjusted gross
67	67	3.5income in the years when the payments were made;
68	68	3.6 (3) to the extent included in federal adjusted gross income, amounts contributed by the
69	69	3.7claimant or spouse to a traditional or Roth style retirement account or plan, but not to exceed
70	70	3.8the retirement base amount reduced by the amount of contributions excluded from federal
71	71	3.9adjusted gross income, but not less than zero;
72	72	3.10 (4) surplus food or other relief in kind supplied by a governmental agency;
73	73	3.11 (5) relief granted under this chapter;
74	74	3.12 (6) child support payments received under a temporary or final decree of dissolution or
75	75	3.13legal separation;
76	76	3.14 (7) restitution payments received by eligible individuals and excludable interest as
77	77	3.15defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
78	78	3.16Public Law 107-16;
79	79	3.17 (8) alimony paid; or
80	80	3.18 (9) veterans disability compensation paid under title 38 of the United States Code.
81	81	3.19 (c) The sum of the following amounts may be subtracted from income:
82	82	3.20 (1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
83	83	3.21 (2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
84	84	3.22 (3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
85	85	3.23 (4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
86	86	3.24 (5) for the claimant's fifth dependent, the exemption amount; and
87	87	3.25 (6) if the claimant or claimant's spouse had a disability or attained the age of 65 on or
88	88	3.26before December 31 of the year for which the taxes were levied or rent paid, the exemption
89	89	3.27amount multiplied by 1.5.
90	90	3.28 (d) For purposes of this subdivision, the following terms have the meanings given:
91	91	3.29 (1) "exemption amount" means the exemption amount under section 290.0121,
92	92	3.30subdivision 1, paragraph (b), for the taxable year for which the income is reported;
93	93	3Section 1.
94	94	23-01242 as introduced12/28/22 REVISOR EAP/BM 4.1 (2) "retirement base amount" means the deductible amount for the taxable year for the
95	95	4.2claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for
96	96	4.3inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard
97	97	4.4to whether the claimant or spouse claimed a deduction; and
98	98	4.5 (3) "traditional or Roth style retirement account or plan" means retirement plans under
99	99	4.6sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.
100	100	4.7 EFFECTIVE DATE.This section is effective beginning with claims based on rent paid
101	101	4.8in 2023 and property taxes payable in 2024.
102	102	4.9 Sec. 2. Minnesota Statutes 2022, section 290A.04, subdivision 2, is amended to read:
103	103	4.10 Subd. 2.Homeowners; homestead credit refund.A claimant whose property taxes
104	104	4.11payable are in excess of the percentage of the household income stated below shall pay an
105	105	4.12amount equal to the percent of income shown for the appropriate household income level
106	106	4.13along with the percent to be paid by the claimant of the remaining amount of property taxes
107	107	4.14payable. The state refund equals the amount of property taxes payable that remain, up to
108	108	4.15the state refund amount shown below.
109	109	4.16 Maximum
110	110	State
111	111	Refund
112	112	4.17 Percent Paid by
113	113	ClaimantPercent of Income4.18 Household Income
114	114	2,770
115	115	3,560$15 percent1.0 percent
116	116	4.19 $0 to 1,739
117	117	4.20 $0 to $1,920
118	118	2,770
119	119	3,560$15 percent1.1 percent
120	120	4.21 1,740 to 3,459
121	121	4.22 $1,921 to $3,820
122	122	2,770
123	123	3,560$15 percent1.2 percent
124	124	4.23 3,460 to 5,239
125	125	4.24 $3,821 to $5,790
126	126	2,770
127	127	3,560$20 percent1.3 percent
128	128	4.25 5,240 to 6,989
129	129	4.26 $5,791 to $7,730
130	130	2,770
131	131	3,560$20 percent1.4 percent
132	132	4.27 6,990 to 8,719
133	133	4.28 $7,731 to $9,640
134	134	2,770
135	135	3,560$20 percent1.5 percent
136	136	4.29 8,720 to 12,219
137	137	4.30 $9,641 to $13,510
138	138	2,770
139	139	3,560$20 percent1.6 percent
140	140	4.31 12,220 to 13,949
141	141	4.32 $13,511 to $15,420
142	142	2,770
143	143	3,560$20 percent1.7 percent
144	144	4.33 13,950 to 15,709
145	145	4.34 $15,421 to $17,370
146	146	2,770
147	147	3,560$20 percent1.8 percent
148	148	4.35 15,710 to 17,449
149	149	4.36 $17,371 to $19,290
150	150	2,770
151	151	3,560$25 percent1.9 percent
152	152	4.37 17,450 to 19,179
153	153	4.38 $19,291 to $21,200
154	154	4Sec. 2.
155	155	23-01242 as introduced12/28/22 REVISOR EAP/BM 2,770
156	156	3,560$25 percent2.0 percent
157	157	5.1 19,180 to 24,429
158	158	5.2 $21,201 to $27,010
159	159	2,770
160	160	3,560$30 percent2.0 percent
161	161	5.3 24,430 to 26,169
162	162	5.4 $27,011 to $28,930
163	163	2,770
164	164	3,560$30 percent2.0 percent
165	165	5.5 26,170 to 29,669
166	166	5.6 $28,931 to $32,800
167	167	2,770
168	168	3,560$35 percent2.0 percent
169	169	5.7 29,670 to 41,859
170	170	5.8 $32,801 to $46,270
171	171	2,240
172	172	2,980$35 percent2.0 percent
173	173	5.9 41,860 to 61,049
174	174	5.10 $46,271 to $67,490
175	175	1,960
176	176	2,670$40 percent2.0 percent
177	177	5.11 61,050 to 69,769
178	178	5.12 $67,491 to $77,130
179	179	1,620
180	180	2,290$40 percent2.1 percent
181	181	5.13 69,770 to 78,499
182	182	5.14 $77,131 to $86,780
183	183	1,450
184	184	2,100$40 percent2.2 percent
185	185	5.15 78,500 to 87,219
186	186	5.16 $86,781 to $96,420
187	187	1,270
188	188	1,900$40 percent2.3 percent
189	189	5.17 87,220 to 95,939
190	190	5.18 $96,421 to $106,060
191	191	1,070
192	192	1,680$45 percent2.4 percent
193	193	5.19 95,940 to 101,179
194	194	5.20 $106,061 to $111,850
195	195	890
196	196	1,480$45 percent2.5 percent
197	197	5.21 101,180 to 104,689
198	198	5.22 $111,851 to $115,730
199	199	730
200	200	1,310$50 percent2.5 percent
201	201	5.23 104,690 to 108,919
202	202	5.24 $115,731 to $120,410
203	203	540
204	204	1,100$50 percent2.5 percent
205	205	5.25 108,920 to 113,149
206	206	5.26 $120,411 to $125,080
207	207	850$50 percent2.6 percent5.27 $125,081 to $135,000
208	208	600$50 percent2.7 percent5.28 $135,001 to $145,000
209	209	350$50 percent2.8 percent5.29 $145,001 to $155,000
210	210	5.30 The payment made to a claimant shall be the amount of the state refund calculated under
211	211	5.31this subdivision. No payment is allowed if the claimant's household income is $113,150
212	212	5.32$155,001 or more.
213	213	5.33 EFFECTIVE DATE.This section is effective for claims based on property taxes payable
214	214	5.34in 2024 and following years.
215	215	5.35 Sec. 3. Minnesota Statutes 2022, section 290A.04, subdivision 4, is amended to read:
216	216	5.36 Subd. 4.Inflation adjustment.The commissioner shall annually adjust the dollar
217	217	5.37amounts of the income thresholds and the maximum refunds under subdivisions 2 and 2a
218	218	5.38as provided in section 270C.22. The statutory year for subdivision 2 is 2023. The statutory
219	219	5.39year for subdivision 2a is 2018.
220	220	5Sec. 3.
221	221	23-01242 as introduced12/28/22 REVISOR EAP/BM 6.1 EFFECTIVE DATE.This section is effective for claims based on property taxes payable
222	222	6.2in 2025 and following years.
223	223	6Sec. 3.
224	224	23-01242 as introduced12/28/22 REVISOR EAP/BM