1.1 A bill for an act
1.2 relating to elections; repealing the political contribution refund program; amending
1.3 Minnesota Statutes 2024, sections 289A.37, subdivision 2; 289A.50, subdivision
1.4 1; 290.01, subdivision 6; repealing Minnesota Statutes 2024, section 290.06,
1.5 subdivision 23.
1.6BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.7 Section 1. Minnesota Statutes 2024, section 289A.37, subdivision 2, is amended to read:
1.8 Subd. 2.Erroneous refunds.(a) Except as provided in paragraph (b), an erroneous
1.9refund occurs when the commissioner issues a payment to a person that exceeds the amount
1.10the person is entitled to receive under law. An erroneous refund is considered an
1.11underpayment of tax on the date issued.
1.12 (b) To the extent that the amount paid does not exceed the amount claimed by the
1.13taxpayer, an erroneous refund does not include the following:
1.14 (1) any amount of a refund or credit paid pursuant to a claim for refund filed by a
1.15taxpayer, including but not limited to refunds of claims made under section 290.06,
1.16subdivision 23; 290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068;
1.17290.0681; or 290.0692; or chapter 290A; or
1.18 (2) any amount paid pursuant to a claim for refund of an overpayment of tax filed by a
1.19taxpayer.
1.20 (c) The commissioner may make an assessment to recover an erroneous refund at any
1.21time within two years from the issuance of the erroneous refund. If all or part of the erroneous
1.22refund was induced by fraud or misrepresentation of a material fact, the assessment may
1.23be made at any time.
1Section 1.
REVISOR EAP/NS 25-0535104/01/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 3149
NINETY-FOURTH SESSION
Authored by Engen, Hudson and Davis04/07/2025
The bill was read for the first time and referred to the Committee on Elections Finance and Government Operations 2.1 (d) Assessments of amounts that are not erroneous refunds under paragraph (b) must be
2.2conducted under sections 289A.38 to 289A.382.
2.3 EFFECTIVE DATE.This section is effective for contributions made after June 30,
2.42025.
2.5 Sec. 2. Minnesota Statutes 2024, section 289A.50, subdivision 1, is amended to read:
2.6 Subdivision 1.General right to refund.(a) Subject to the requirements of this section
2.7and section 289A.40, a taxpayer who has paid a tax in excess of the taxes lawfully due and
2.8who files a written claim for refund will be refunded or credited the overpayment of the tax
2.9determined by the commissioner to be erroneously paid.
2.10 (b) The claim must specify the name of the taxpayer, the date when and the period for
2.11which the tax was paid, the kind of tax paid, the amount of the tax that the taxpayer claims
2.12was erroneously paid, the grounds on which a refund is claimed, and other information
2.13relative to the payment and in the form required by the commissioner. An income tax, estate
2.14tax, or corporate franchise tax return, or amended return claiming an overpayment constitutes
2.15a claim for refund.
2.16 (c) When, in the course of an examination, and within the time for requesting a refund,
2.17the commissioner determines that there has been an overpayment of tax, the commissioner
2.18shall refund or credit the overpayment to the taxpayer and no demand is necessary. If the
2.19overpayment exceeds $1, the amount of the overpayment must be refunded to the taxpayer.
2.20If the amount of the overpayment is less than $1, the commissioner is not required to refund.
2.21In these situations, the commissioner does not have to make written findings or serve notice
2.22by mail to the taxpayer.
2.23 (d) If the amount allowable as a credit for withholding, estimated taxes, or dependent
2.24care exceeds the tax against which the credit is allowable, the amount of the excess is
2.25considered an overpayment. The refund allowed by section 290.06, subdivision 23, is also
2.26considered an overpayment. The requirements of section 270C.33 do not apply to the
2.27refunding of such an overpayment shown on the original return filed by a taxpayer.
2.28 (e) If the entertainment tax withheld at the source exceeds by $1 or more the taxes,
2.29penalties, and interest reported in the return of the entertainment entity or imposed by section
2.30290.9201, the excess must be refunded to the entertainment entity. If the excess is less than
2.31$1, the commissioner need not refund that amount.
2.32 (f) If the surety deposit required for a construction contract exceeds the liability of the
2.33out-of-state contractor, the commissioner shall refund the difference to the contractor.
2Sec. 2.
REVISOR EAP/NS 25-0535104/01/25 3.1 (g) An action of the commissioner in refunding the amount of the overpayment does not
3.2constitute a determination of the correctness of the return of the taxpayer.
3.3 (h) There is appropriated from the general fund to the commissioner of revenue the
3.4amount necessary to pay refunds allowed under this section.
3.5 EFFECTIVE DATE.This section is effective for contributions made after June 30,
3.62025.
3.7 Sec. 3. Minnesota Statutes 2024, section 290.01, subdivision 6, is amended to read:
3.8 Subd. 6.Taxpayer.The term "taxpayer" means any person or corporation subject to a
3.9tax imposed by this chapter. For purposes of section 290.06, subdivision 23, the term
3.10"taxpayer" means an individual eligible to vote in Minnesota under section 201.014.
3.11 Sec. 4. REPEALER.
3.12 Minnesota Statutes 2024, section 290.06, subdivision 23, is repealed.
3.13 EFFECTIVE DATE.This section is effective for contributions made after June 30,
3.142025.
3Sec. 4.
REVISOR EAP/NS 25-0535104/01/25 290.06 RATES OF TAX; CREDITS.
Subd. 23.Refund of contributions to political parties and candidates.(a) A taxpayer may
claim a refund equal to the amount of the taxpayer's contributions made in the calendar year to
candidates and to a political party. The maximum refund for an individual must not exceed $75 and
for a married couple, filing jointly, must not exceed $150. A refund of a contribution is allowed
only if the taxpayer files a form required by the commissioner and attaches to the form a copy of
an official refund receipt form issued by the candidate or party and signed by the candidate, the
treasurer of the candidate's principal campaign committee, or the chair or treasurer of the party unit,
after the contribution was received. The receipt forms must be numbered, and the data on the receipt
that are not public must be made available to the campaign finance and public disclosure board
upon its request. A claim must be filed with the commissioner no sooner than January 1 of the
calendar year in which the contribution was made and no later than April 15 of the calendar year
following the calendar year in which the contribution was made. A taxpayer may file only one claim
per calendar year. Amounts paid by the commissioner after June 15 of the calendar year following
the calendar year in which the contribution was made must include interest at the rate specified in
section 270C.405.
(b) No refund is allowed under this subdivision for a contribution to a candidate unless the
candidate:
(1) has signed an agreement to limit campaign expenditures as provided in section 10A.322;
(2) is seeking an office for which voluntary spending limits are specified in section 10A.25;
and
(3) has designated a principal campaign committee.
This subdivision does not limit the campaign expenditures of a candidate who does not sign an
agreement but accepts a contribution for which the contributor improperly claims a refund.
(c) For purposes of this subdivision, "political party" means a major political party as defined
in section 200.02, subdivision 7, or a minor political party qualifying for inclusion on the income
tax or property tax refund form under section 10A.31, subdivision 3a.
A "major party" or "minor party" includes the aggregate of that party's organization within each
house of the legislature, the state party organization, and the party organization within congressional
districts, counties, legislative districts, municipalities, and precincts.
"Candidate" means a candidate as defined in section 10A.01, subdivision 10, except a candidate
for judicial office.
"Contribution" means a gift of money.
(d) The commissioner shall make copies of the form available to the public and candidates upon
request.
(e) The following data collected or maintained by the commissioner under this subdivision are
private: the identities of individuals claiming a refund, the identities of candidates to whom those
individuals have made contributions, and the amount of each contribution.
(f) The commissioner shall report to the campaign finance and public disclosure board by each
August 1 a summary showing the total number and aggregate amount of political contribution
refunds made on behalf of each candidate and each political party. These data are public.
(g) The amount necessary to pay claims for the refund provided in this section is appropriated
from the general fund to the commissioner of revenue.
(h) For a taxpayer who files a claim for refund via the Internet or other electronic means, the
commissioner may accept the number on the official receipt as documentation that a contribution
was made rather than the actual receipt as required by paragraph (a).
1R
APPENDIX
Repealed Minnesota Statutes: 25-05351