Minnesota 2025-2026 Regular Session

Minnesota House Bill HF759 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; modifying individual income tax and corporate franchise tax
3	3	1.3 refunds; requiring refunds to include interest calculated on payments of estimated
4	4	1.4 tax; amending Minnesota Statutes 2024, section 289A.50, subdivision 1.
5	5	1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
6	6	1.6 Section 1. Minnesota Statutes 2024, section 289A.50, subdivision 1, is amended to read:
7	7	1.7 Subdivision 1.General right to refund.(a) Subject to the requirements of this section
8	8	1.8and section 289A.40, a taxpayer who has paid a tax in excess of the taxes lawfully due and
9	9	1.9who files a written claim for refund will be refunded or credited the overpayment of the tax
10	10	1.10determined by the commissioner to be erroneously paid. The amount of excess tax includes
11	11	1.11the amount of interest calculated on each installment of estimated tax paid for a taxable
12	12	1.12year by an S corporation or partnership under section 289A.25 or a corporation under section
13	13	1.13289A.26. Interest is calculated from the date the installment payment is made to the earlier
14	14	1.14of the date the claim for a refund is made or the due date for paying the tax. The interest
15	15	1.15rate used to calculate the amount of refunded interest is the same rate used to calculate
16	16	1.16interest paid to the commissioner under section 289A.55, subdivision 1.
17	17	1.17 (b) The claim must specify the name of the taxpayer, the date when and the period for
18	18	1.18which the tax was paid, the kind of tax paid, the amount of the tax that the taxpayer claims
19	19	1.19was erroneously paid, the grounds on which a refund is claimed, and other information
20	20	1.20relative to the payment and in the form required by the commissioner. An income tax, estate
21	21	1.21tax, or corporate franchise tax return, or amended return claiming an overpayment constitutes
22	22	1.22a claim for refund.
23	23	1Section 1.
24	24	REVISOR EAP/MI 25-0344102/07/25
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. 759
30	30	NINETY-FOURTH SESSION
31	31	Authored by Robbins02/13/2025
32	32	The bill was read for the first time and referred to the Committee on Taxes 2.1 (c) When, in the course of an examination, and within the time for requesting a refund,
33	33	2.2the commissioner determines that there has been an overpayment of tax, the commissioner
34	34	2.3shall refund or credit the overpayment to the taxpayer and no demand is necessary. If the
35	35	2.4overpayment exceeds $1, the amount of the overpayment must be refunded to the taxpayer.
36	36	2.5If the amount of the overpayment is less than $1, the commissioner is not required to refund.
37	37	2.6In these situations, the commissioner does not have to make written findings or serve notice
38	38	2.7by mail to the taxpayer.
39	39	2.8 (d) If the amount allowable as a credit for withholding, estimated taxes, or dependent
40	40	2.9care exceeds the tax against which the credit is allowable, the amount of the excess is
41	41	2.10considered an overpayment. The refund allowed by section 290.06, subdivision 23, is also
42	42	2.11considered an overpayment. The requirements of section 270C.33 do not apply to the
43	43	2.12refunding of such an overpayment shown on the original return filed by a taxpayer.
44	44	2.13 (e) If the entertainment tax withheld at the source exceeds by $1 or more the taxes,
45	45	2.14penalties, and interest reported in the return of the entertainment entity or imposed by section
46	46	2.15290.9201, the excess must be refunded to the entertainment entity. If the excess is less than
47	47	2.16$1, the commissioner need not refund that amount.
48	48	2.17 (f) If the surety deposit required for a construction contract exceeds the liability of the
49	49	2.18out-of-state contractor, the commissioner shall refund the difference to the contractor.
50	50	2.19 (g) An action of the commissioner in refunding the amount of the overpayment does not
51	51	2.20constitute a determination of the correctness of the return of the taxpayer.
52	52	2.21 (h) There is appropriated from the general fund to the commissioner of revenue the
53	53	2.22amount necessary to pay refunds allowed under this section.
54	54	2.23 EFFECTIVE DATE.This section is effective for refunds due on taxes paid for taxable
55	55	2.24years beginning after December 31, 2024.
56	56	2Section 1.
57	57	REVISOR EAP/MI 25-0344102/07/25