1.1 A bill for an act
1.2 relating to taxation; individual income; establishing a budget surplus credit;
1.3 appropriating money; proposing coding for new law in Minnesota Statutes, chapter
1.4 290.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. [290.0696] BUDGET SURPLUS CREDIT.
1.7 Subdivision 1.Definitions.(a) For purposes of this subdivision, the following terms
1.8have the meanings given.
1.9 (b) "Budget close report" means the report required under section 16A.103, subdivision
1.101i.
1.11 (c) "Qualifying tax year" means the even-numbered taxable year immediately preceding
1.12the calendar year in which the budget close report is issued for a biennium that includes the
1.13even-numbered taxable year.
1.14 (d) "Qualifying taxpayer" means an individual or married couple who, for a qualifying
1.15tax year, both filed a Minnesota individual income tax return within six months of the due
1.16date for filing a return in an odd-numbered year and reported a tax liability. Qualifying
1.17taxpayer does not include a dependent, as defined in sections 151 and 152 of the Internal
1.18Revenue Code, for the qualifying tax year.
1.19 Subd. 2.Credit allowed.(a) A qualifying taxpayer is allowed a budget surplus credit
1.20retroactively under this subdivision for a qualifying tax year. The credit may not exceed the
1.21taxpayer's liability for tax in the qualifying tax year, as computed under this chapter, for the
1.22taxable year. The credit is equal to the amount of a qualifying taxpayer's tax liability, if any,
1Section 1.
REVISOR EAP/AC 25-0196501/22/25
State of Minnesota
This Document can be made available
in alternative formats upon request
HOUSE OF REPRESENTATIVES
H. F. No. 317
NINETY-FOURTH SESSION
Authored by Nadeau, Myers and Allen02/13/2025
The bill was read for the first time and referred to the Committee on Taxes 2.1in the qualifying tax year, multiplied by the credit percentage calculated under this
2.2subdivision. By January 31 of each odd-numbered year, the commissioner of revenue must
2.3determine the amount of each qualifying taxpayer's budget surplus credit and pay a refund,
2.4if any, to each qualifying taxpayer as required by this subdivision.
2.5 (b) The credit percentage for each qualifying taxpayer is the amount of the unrestricted
2.6balance at the close of the biennium as determined by the commissioner of management
2.7and budget in the most recent budget close report, less any amount the commissioner of
2.8management and budget estimates will be necessary to make the allocations in section
2.916A.152, subdivision 2, divided by the aggregate tax liability of all qualifying taxpayers in
2.10a qualifying tax year.
2.11 Subd. 3.Part-year residents.For a qualifying taxpayer who was a resident of Minnesota
2.12for less than the entire taxable year for which the return was filed, the credit equals the credit
2.13amount determined under subdivision 2, multiplied by the percentage determined in section
2.14290.06, subdivision 2c, paragraph (e), as calculated on the qualifying taxpayer's original
2.15income tax return for a qualifying tax year.
2.16 Subd. 4.Claim for refund not required.A refund due to the application of the credit
2.17allowed under this section must be paid by the commissioner of revenue based on information
2.18available in the commissioner's records, except that, if the records are not sufficient to allow
2.19the commissioner to make a payment, the commissioner may require an individual to file
2.20an amended return to claim the refund. Except as otherwise provided, the commissioner
2.21must not require a qualifying taxpayer to file a claim to receive the refund. The commissioner
2.22must update all forms and instructions for the qualifying tax year to reflect the availability
2.23of the credit. The commissioner must adjust the tax liability of a qualifying taxpayer receiving
2.24a surplus credit for the qualifying tax year. Refunds under this section are refunds for
2.25purposes of revenue recapture under section 270A.03, subdivision 7.
2.26 Subd. 5.Refunds; authority of commissioner.Notwithstanding sections 9.031 and
2.2716B.49, chapter 16C, and any other law to the contrary, the commissioner of revenue may
2.28take whatever actions the commissioner deems necessary to pay the refunds required by
2.29this subdivision. The commissioner may, in consultation with the commissioner of
2.30management and budget, contract with a private vendor or vendors to process, print, mail,
2.31or deliver the checks, warrants, or debit cards that may be required under this subdivision
2.32and receive and disburse state funds to make the direct payments by check, warrant, electronic
2.33funds transfer, or debit card.
2Section 1.
REVISOR EAP/AC 25-0196501/22/25 3.1 Subd. 6.Refunds; appropriation.By December 31 of each odd-numbered year, the
3.2amount necessary to pay the refunds provided in this subdivision is appropriated from the
3.3general fund to the commissioner of revenue.
3.4 EFFECTIVE DATE.This section is effective the day following final enactment, for
3.5refunds due by December 31, 2027.
3Section 1.
REVISOR EAP/AC 25-0196501/22/25