Minnesota 2025-2026 Regular Session

Minnesota House Bill HF1718 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; estate; removing obsolete provisions and providing portability
3	3	1.3 of the estate tax exclusion; amending Minnesota Statutes 2024, sections 289A.10,
4	4	1.4 subdivision 1, by adding a subdivision; 289A.12, by adding a subdivision; 291.016,
5	5	1.5 subdivision 3; 291.03, subdivision 1.
6	6	1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
7	7	1.7 Section 1. Minnesota Statutes 2024, section 289A.10, subdivision 1, is amended to read:
8	8	1.8 Subdivision 1.Return required.In the case of a decedent who has an interest in property
9	9	1.9with a situs in Minnesota, the personal representative must submit a Minnesota estate tax
10	10	1.10return to the commissioner, on a form prescribed by the commissioner, if:
11	11	1.11 (1) a federal estate tax return is required to be filed; or
12	12	1.12 (2) the sum of the federal gross estate and federal adjusted taxable gifts, as defined in
13	13	1.13section 2001(b) of the Internal Revenue Code, made within three years of the date of the
14	14	1.14decedent's death exceeds $1,200,000 for estates of decedents dying in 2014; $1,400,000 for
15	15	1.15estates of decedents dying in 2015; $1,600,000 for estates of decedents dying in 2016;
16	16	1.16$2,100,000 for estates of decedents dying in 2017; $2,400,000 for estates of decedents dying
17	17	1.17in 2018; $2,700,000 for estates of decedents dying in 2019; and $3,000,000 for estates of
18	18	1.18decedents dying in 2020 and thereafter.
19	19	1.19 The return must contain a computation of the Minnesota estate tax due. The return must
20	20	1.20be signed by the personal representative.
21	21	1.21 EFFECTIVE DATE.This section is effective the day following final enactment.
22	22	1Section 1.
23	23	REVISOR EAP/MI 25-0105412/11/24
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. 1718
29	29	NINETY-FOURTH SESSION 2.1 Sec. 2. Minnesota Statutes 2024, section 289A.10, is amended by adding a subdivision to
30	30	2.2read:
31	31	2.3 Subd. 1b.Election of portability of deceased spousal unused exclusion amounts;
32	32	2.4election irrevocable; deemed elections.(a) A personal representative of a decedent's estate
33	33	2.5may elect, on a return required under subdivision 1, to allow a decedent's surviving spouse
34	34	2.6to take into account the decedent's deceased spousal unused exclusion amount, as provided
35	35	2.7in section 291.016, subdivision 3, paragraph (b).
36	36	2.8 (b) The election under paragraph (a) is irrevocable. By filing a return under subdivision
37	37	2.91, the personal representative is deemed to have elected portability unless the personal
38	38	2.10representative states affirmatively on the return that the decedent's estate is not electing
39	39	2.11portability. The commissioner may prescribe the form of the election on the return.
40	40	2.12 EFFECTIVE DATE.This section is effective for estates of decedents dying after June
41	41	2.1330, 2025.
42	42	2.14 Sec. 3. Minnesota Statutes 2024, section 289A.12, is amended by adding a subdivision to
43	43	2.15read:
44	44	2.16 Subd. 19.Election of portability of deceased spousal unused exclusion amounts
45	45	2.17when estate tax return not required.A personal representative of a decedent's estate that
46	46	2.18is not required to file a return under section 289A.10, subdivision 1, may file a return to
47	47	2.19allow a decedent's surviving spouse to take into account the decedent's deceased spousal
48	48	2.20unused exclusion amount, as provided in section 291.016, subdivision 3, paragraph (b). The
49	49	2.21return is subject to the same provisions as a return required under section 289A.10,
50	50	2.22subdivision 1.
51	51	2.23 EFFECTIVE DATE.This section is effective for estates of decedents dying after June
52	52	2.2430, 2025.
53	53	2.25 Sec. 4. Minnesota Statutes 2024, section 291.016, subdivision 3, is amended to read:
54	54	2.26 Subd. 3.Subtraction.(a) For estates of decedents dying after December 31, 2016, A
55	55	2.27subtraction is allowed in computing the Minnesota taxable estate, equal to the sum of:
56	56	2.28 (1) the an exclusion amount for the year of death under paragraph (b) of $3,000,000;
57	57	2.29and
58	58	2.30 (2) the lesser of:
59	59	2Sec. 4.
60	60	REVISOR EAP/MI 25-0105412/11/24 3.1 (i) (2) the value of qualified small business property under section 291.03, subdivision
61	61	3.29, and the value of qualified farm property under section 291.03, subdivision 10; or, up to
62	62	3.3$2,000,000.
63	63	3.4 (ii) $5,000,000 minus the exclusion amount for the year of death under paragraph (b).
64	64	3.5 (b) The following exclusion amounts apply for the year of death:
65	65	3.6 (1) $2,100,000 for decedents dying in 2017;
66	66	3.7 (2) $2,400,000 for decedents dying in 2018;
67	67	3.8 (3) $2,700,000 for decedents dying in 2019; and
68	68	3.9 (4) $3,000,000 for decedents dying in 2020 and thereafter.
69	69	3.10 (b) In the case of a decedent that is a surviving spouse, there is an additional subtraction
70	70	3.11allowed in computing the Minnesota taxable estate, a deceased spousal unused exclusion
71	71	3.12amount, which is equal to the lesser of:
72	72	3.13 (1) $3,000,000; or
73	73	3.14 (2) the excess of $3,000,000 over the amount of the Minnesota taxable estate of the last
74	74	3.15deceased spouse of the decedent, but not including in the taxable estate property described
75	75	3.16in section 291.03, subdivisions 9 and 10, and computed without regard to the subtractions
76	76	3.17in this subdivision, but in no case less than zero.
77	77	3.18 (c) The subtraction under this subdivision must not reduce the Minnesota taxable estate
78	78	3.19to less than zero.
79	79	3.20 EFFECTIVE DATE.This section is effective for estates of decedents dying after June
80	80	3.2130, 2025.
81	81	3.22 Sec. 5. Minnesota Statutes 2024, section 291.03, subdivision 1, is amended to read:
82	82	3.23 Subdivision 1.Tax amount.The tax imposed must be computed by applying to the
83	83	3.24Minnesota taxable estate the following schedule of rates and then multiplying the resulting
84	84	3.25amount multiplied by a fraction, not greater than one, the numerator of which is the value
85	85	3.26of the Minnesota gross estate plus the value of gifts under section 291.016, subdivision 2,
86	86	3.27clause (3), with a Minnesota situs, and the denominator of which is the federal gross estate
87	87	3.28plus the value of gifts under section 291.016, subdivision 2, clause (3):
88	88	3.29 (a) For estates of decedents dying in 2017:
89	89	Rate of Tax3.30 Amount of Minnesota Taxable Estate
90	90	12 percent3.31Not over $5,100,000
91	91	3Sec. 5.
92	92	REVISOR EAP/MI 25-0105412/11/24 $612,000 plus 12.8 percent of the excess over
93	93	4.2 $5,100,000
94	94	4.1Over $5,100,000 but not over $7,100,000
95	95	$868,000 plus 13.6 percent of the excess over
96	96	4.4 $7,100,000
97	97	4.3Over $7,100,000 but not over $8,100,000
98	98	$1,004,000 plus 14.4 percent of the excess
99	99	4.6 over $8,100,000
100	100	4.5Over $8,100,000 but not over $9,100,000
101	101	$1,148,000 plus 15.2 percent of the excess
102	102	4.8 over $9,100,000
103	103	4.7Over $9,100,000 but not over $10,100,000
104	104	$1,300,000 plus 16 percent of the excess over
105	105	4.10 $10,100,000
106	106	4.9Over $10,100,000
107	107	4.11 (b) For estates of decedents dying in 2018 and thereafter:
108	108	Rate of Tax4.12 Amount of Minnesota Taxable Estate
109	109	13 percent4.13Not over $7,100,000
110	110	$923,000 plus 13.6 percent of the excess over
111	111	4.15 $7,100,000
112	112	4.14Over $7,100,000 but not over $8,100,000
113	113	$1,059,000 plus 14.4 percent of the excess
114	114	4.17 over $8,100,000
115	115	4.16Over $8,100,000 but not over $9,100,000
116	116	$1,203,000 plus 15.2 percent of the excess
117	117	4.19 over $9,100,000
118	118	4.18Over $9,100,000 but not over $10,100,000
119	119	$1,355,000 plus 16 percent of the excess over
120	120	4.21 $10,100,000
121	121	4.20Over $10,100,000
122	122	4.22 EFFECTIVE DATE.This section is effective the day following final enactment.
123	123	4Sec. 5.
124	124	REVISOR EAP/MI 25-0105412/11/24