Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF105 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; property; modifying the definition of income for purposes of
3	3	1.3 the property tax refund; amending Minnesota Statutes 2024, section 290A.03,
4	4	1.4 subdivision 3.
5	5	1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
6	6	1.6 Section 1. Minnesota Statutes 2024, section 290A.03, subdivision 3, is amended to read:
7	7	1.7 Subd. 3.Income.(a) "Income" means the sum of the following:
8	8	1.8 (1) federal adjusted gross income as defined in the Internal Revenue Code; and
9	9	1.9 (2) the sum of the following amounts to the extent not included in clause (1):
10	10	1.10 (i) all nontaxable income;
11	11	1.11 (ii) the amount of a passive activity loss that is not disallowed as a result of section 469,
12	12	1.12paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity loss
13	13	1.13carryover allowed under section 469(b) of the Internal Revenue Code;
14	14	1.14 (iii) an amount equal to the total of any discharge of qualified farm indebtedness of a
15	15	1.15solvent individual excluded from gross income under section 108(g) of the Internal Revenue
16	16	1.16Code;
17	17	1.17 (iv) cash public assistance and relief;
18	18	1.18 (v) any pension or annuity (including railroad retirement benefits, all payments received
19	19	1.19under the federal Social Security Act, Supplemental Security Income, and veterans benefits),
20	20	1.20which was not exclusively funded by the claimant or spouse, or which was funded exclusively
21	21	1Section 1.
22	22	25-00557 as introduced12/04/24 REVISOR EAP/VJ
23	23	SENATE
24	24	STATE OF MINNESOTA
25	25	S.F. No. 105NINETY-FOURTH SESSION
26	26	(SENATE AUTHORS: DRAZKOWSKI)
27	27	OFFICIAL STATUSD-PGDATE
28	28	Introduction and first reading01/16/2025
29	29	Referred to Taxes 2.1by the claimant or spouse and which funding payments were excluded from federal adjusted
30	30	2.2gross income in the years when the payments were made;
31	31	2.3 (vi) interest received from the federal or a state government or any instrumentality or
32	32	2.4political subdivision thereof;
33	33	2.5 (vii) workers' compensation;
34	34	2.6 (viii) nontaxable strike benefits;
35	35	2.7 (ix) the gross amounts of payments received in the nature of disability income or sick
36	36	2.8pay as a result of accident, sickness, or other disability, whether funded through insurance
37	37	2.9or otherwise;
38	38	2.10 (x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
39	39	2.111986, as amended through December 31, 1995;
40	40	2.12 (xi) contributions made by the claimant to an individual retirement account, including
41	41	2.13a qualified voluntary employee contribution; simplified employee pension plan;
42	42	2.14self-employed retirement plan; cash or deferred arrangement plan under section 401(k) of
43	43	2.15the Internal Revenue Code; or deferred compensation plan under section 457 of the Internal
44	44	2.16Revenue Code, to the extent the sum of amounts exceeds the retirement base amount for
45	45	2.17the claimant and spouse;
46	46	2.18 (xii) to the extent not included in federal adjusted gross income, distributions received
47	47	2.19by the claimant or spouse from a traditional or Roth style retirement account or plan;
48	48	2.20 (xiii) nontaxable scholarship or fellowship grants;
49	49	2.21 (xiv) alimony received to the extent not included in the recipient's income;
50	50	2.22 (xv) the amount of deduction allowed under section 220 or 223 of the Internal Revenue
51	51	2.23Code;
52	52	2.24 (xvi) the amount deducted for tuition expenses under section 222 of the Internal Revenue
53	53	2.25Code; and
54	54	2.26 (xvii) the amount deducted for certain expenses of elementary and secondary school
55	55	2.27teachers under section 62(a)(2)(D) of the Internal Revenue Code.
56	56	2.28 In the case of an individual who files an income tax return on a fiscal year basis, the
57	57	2.29term "federal adjusted gross income" shall mean federal adjusted gross income reflected in
58	58	2.30the fiscal year ending in the calendar year. Federal adjusted gross income shall not be reduced
59	59	2.31by the amount of a net operating loss carryback or carryforward or a capital loss carryback
60	60	2.32or carryforward allowed for the year.
61	61	2Section 1.
62	62	25-00557 as introduced12/04/24 REVISOR EAP/VJ 3.1 (b) "Income" does not include:
63	63	3.2 (1) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
64	64	3.3 (2) amounts of any pension or annuity which was exclusively funded by the claimant
65	65	3.4or spouse and which funding payments were not excluded from federal adjusted gross
66	66	3.5income in the years when the payments were made;
67	67	3.6 (3) to the extent included in federal adjusted gross income, amounts contributed by the
68	68	3.7claimant or spouse to a traditional retirement account or plan or Roth style retirement account
69	69	3.8or plan, but not to exceed the retirement base amount reduced by the amount of contributions
70	70	3.9excluded from federal adjusted gross income, but not less than zero;
71	71	3.10 (4) surplus food or other relief in kind supplied by a governmental agency;
72	72	3.11 (5) relief granted under this chapter;
73	73	3.12 (6) child support payments received under a temporary or final decree of dissolution or
74	74	3.13legal separation;
75	75	3.14 (7) restitution payments received by eligible individuals and excludable interest as
76	76	3.15defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of 2001,
77	77	3.16Public Law 107-16;
78	78	3.17 (8) alimony paid; or
79	79	3.18 (9) veterans disability compensation paid under title 38 of the United States Code; or
80	80	3.19 (10) to the extent not included in federal adjusted gross income, distributions received
81	81	3.20by the claimant or spouse from a Roth style retirement account or plan.
82	82	3.21 (c) The sum of the following amounts may be subtracted from income:
83	83	3.22 (1) for the claimant's first dependent, the exemption amount multiplied by 1.4;
84	84	3.23 (2) for the claimant's second dependent, the exemption amount multiplied by 1.3;
85	85	3.24 (3) for the claimant's third dependent, the exemption amount multiplied by 1.2;
86	86	3.25 (4) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
87	87	3.26 (5) for the claimant's fifth dependent, the exemption amount; and
88	88	3.27 (6) if the claimant or claimant's spouse had a disability or attained the age of 65 on or
89	89	3.28before December 31 of the year for which the taxes were levied, the exemption amount.
90	90	3.29 (d) For purposes of this subdivision, the following terms have the meanings given:
91	91	3Section 1.
92	92	25-00557 as introduced12/04/24 REVISOR EAP/VJ 4.1 (1) "exemption amount" means the exemption amount under section 290.0121,
93	93	4.2subdivision 1, paragraph (b), for the taxable year for which the income is reported;
94	94	4.3 (2) "retirement base amount" means the deductible amount for the taxable year for the
95	95	4.4claimant and spouse under section 219(b)(5)(A) of the Internal Revenue Code, adjusted for
96	96	4.5inflation as provided in section 219(b)(5)(C) of the Internal Revenue Code, without regard
97	97	4.6to whether the claimant or spouse claimed a deduction; and
98	98	4.7 (3) "traditional or Roth style retirement account or plan" means retirement plans under
99	99	4.8sections 401, 403, 408, 408A, and 457 of the Internal Revenue Code.; and
100	100	4.9 (4) "Roth style retirement account or plan" means a retirement plan under section 408A
101	101	4.10of the Internal Revenue Code or a designated Roth contribution in a separate account in a
102	102	4.11retirement plan under sections 401, 403, and 457 of the Internal Revenue Code.
103	103	4.12 EFFECTIVE DATE.This section is effective for claims based on property taxes payable
104	104	4.13in 2025 and following years.
105	105	4Section 1.
106	106	25-00557 as introduced12/04/24 REVISOR EAP/VJ