Minnesota 2025-2026 Regular Session

Minnesota House Bill HF317 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; individual income; establishing a budget surplus credit;
3	3	1.3 appropriating money; proposing coding for new law in Minnesota Statutes, chapter
4	4	1.4 290.
5	5	1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
6	6	1.6 Section 1. [290.0696] BUDGET SURPLUS CREDIT.
7	7	1.7 Subdivision 1.Definitions.(a) For purposes of this subdivision, the following terms
8	8	1.8have the meanings given.
9	9	1.9 (b) "Budget close report" means the report required under section 16A.103, subdivision
10	10	1.101i.
11	11	1.11 (c) "Qualifying tax year" means the even-numbered taxable year immediately preceding
12	12	1.12the calendar year in which the budget close report is issued for a biennium that includes the
13	13	1.13even-numbered taxable year.
14	14	1.14 (d) "Qualifying taxpayer" means an individual or married couple who, for a qualifying
15	15	1.15tax year, both filed a Minnesota individual income tax return within six months of the due
16	16	1.16date for filing a return in an odd-numbered year and reported a tax liability. Qualifying
17	17	1.17taxpayer does not include a dependent, as defined in sections 151 and 152 of the Internal
18	18	1.18Revenue Code, for the qualifying tax year.
19	19	1.19 Subd. 2.Credit allowed.(a) A qualifying taxpayer is allowed a budget surplus credit
20	20	1.20retroactively under this subdivision for a qualifying tax year. The credit may not exceed the
21	21	1.21taxpayer's liability for tax in the qualifying tax year, as computed under this chapter, for the
22	22	1.22taxable year. The credit is equal to the amount of a qualifying taxpayer's tax liability, if any,
23	23	1Section 1.
24	24	REVISOR EAP/AC 25-0196501/22/25
25	25	State of Minnesota
26	26	This Document can be made available
27	27	in alternative formats upon request
28	28	HOUSE OF REPRESENTATIVES
29	29	H. F. No. 317
30	30	NINETY-FOURTH SESSION
31	31	Authored by Nadeau, Myers and Allen02/13/2025
32	32	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
33	33	2.2subdivision. By January 31 of each odd-numbered year, the commissioner of revenue must
34	34	2.3determine the amount of each qualifying taxpayer's budget surplus credit and pay a refund,
35	35	2.4if any, to each qualifying taxpayer as required by this subdivision.
36	36	2.5 (b) The credit percentage for each qualifying taxpayer is the amount of the unrestricted
37	37	2.6balance at the close of the biennium as determined by the commissioner of management
38	38	2.7and budget in the most recent budget close report, less any amount the commissioner of
39	39	2.8management and budget estimates will be necessary to make the allocations in section
40	40	2.916A.152, subdivision 2, divided by the aggregate tax liability of all qualifying taxpayers in
41	41	2.10a qualifying tax year.
42	42	2.11 Subd. 3.Part-year residents.For a qualifying taxpayer who was a resident of Minnesota
43	43	2.12for less than the entire taxable year for which the return was filed, the credit equals the credit
44	44	2.13amount determined under subdivision 2, multiplied by the percentage determined in section
45	45	2.14290.06, subdivision 2c, paragraph (e), as calculated on the qualifying taxpayer's original
46	46	2.15income tax return for a qualifying tax year.
47	47	2.16 Subd. 4.Claim for refund not required.A refund due to the application of the credit
48	48	2.17allowed under this section must be paid by the commissioner of revenue based on information
49	49	2.18available in the commissioner's records, except that, if the records are not sufficient to allow
50	50	2.19the commissioner to make a payment, the commissioner may require an individual to file
51	51	2.20an amended return to claim the refund. Except as otherwise provided, the commissioner
52	52	2.21must not require a qualifying taxpayer to file a claim to receive the refund. The commissioner
53	53	2.22must update all forms and instructions for the qualifying tax year to reflect the availability
54	54	2.23of the credit. The commissioner must adjust the tax liability of a qualifying taxpayer receiving
55	55	2.24a surplus credit for the qualifying tax year. Refunds under this section are refunds for
56	56	2.25purposes of revenue recapture under section 270A.03, subdivision 7.
57	57	2.26 Subd. 5.Refunds; authority of commissioner.Notwithstanding sections 9.031 and
58	58	2.2716B.49, chapter 16C, and any other law to the contrary, the commissioner of revenue may
59	59	2.28take whatever actions the commissioner deems necessary to pay the refunds required by
60	60	2.29this subdivision. The commissioner may, in consultation with the commissioner of
61	61	2.30management and budget, contract with a private vendor or vendors to process, print, mail,
62	62	2.31or deliver the checks, warrants, or debit cards that may be required under this subdivision
63	63	2.32and receive and disburse state funds to make the direct payments by check, warrant, electronic
64	64	2.33funds transfer, or debit card.
65	65	2Section 1.
66	66	REVISOR EAP/AC 25-0196501/22/25 3.1 Subd. 6.Refunds; appropriation.By December 31 of each odd-numbered year, the
67	67	3.2amount necessary to pay the refunds provided in this subdivision is appropriated from the
68	68	3.3general fund to the commissioner of revenue.
69	69	3.4 EFFECTIVE DATE.This section is effective the day following final enactment, for
70	70	3.5refunds due by December 31, 2027.
71	71	3Section 1.
72	72	REVISOR EAP/AC 25-0196501/22/25