Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF3458 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 campaign finance; repealing the political contribution refund program;
3	3	1.3 making conforming changes; amending Minnesota Statutes 2024, sections 289A.37,
4	4	1.4 subdivision 2; 289A.50, subdivision 1; 290.01, subdivision 6; repealing Minnesota
5	5	1.5 Statutes 2024, sections 10A.322, subdivision 4; 13.4967, subdivision 2; 290.06,
6	6	1.6 subdivision 23.
7	7	1.7BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
8	8	1.8 Section 1. Minnesota Statutes 2024, section 289A.37, subdivision 2, is amended to read:
9	9	1.9 Subd. 2.Erroneous refunds.(a) Except as provided in paragraph (b), an erroneous
10	10	1.10refund occurs when the commissioner issues a payment to a person that exceeds the amount
11	11	1.11the person is entitled to receive under law. An erroneous refund is considered an
12	12	1.12underpayment of tax on the date issued.
13	13	1.13 (b) To the extent that the amount paid does not exceed the amount claimed by the
14	14	1.14taxpayer, an erroneous refund does not include the following:
15	15	1.15 (1) any amount of a refund or credit paid pursuant to a claim for refund filed by a
16	16	1.16taxpayer, including but not limited to refunds of claims made under section 290.06,
17	17	1.17subdivision 23; 290.067; 290.0671; 290.0672; 290.0674; 290.0675; 290.0677; 290.068;
18	18	1.18290.0681; or 290.0692; or chapter 290A; or
19	19	1.19 (2) any amount paid pursuant to a claim for refund of an overpayment of tax filed by a
20	20	1.20taxpayer.
21	21	1.21 (c) The commissioner may make an assessment to recover an erroneous refund at any
22	22	1.22time within two years from the issuance of the erroneous refund. If all or part of the erroneous
23	23	1Section 1.
24	24	25-05445 as introduced04/22/25 REVISOR JFK/DG
25	25	SENATE
26	26	STATE OF MINNESOTA
27	27	S.F. No. 3458NINETY-FOURTH SESSION
28	28	(SENATE AUTHORS: RASMUSSON and Drazkowski)
29	29	OFFICIAL STATUSD-PGDATE
30	30	Introduction and first reading04/28/2025
31	31	Referred to Elections 2.1refund was induced by fraud or misrepresentation of a material fact, the assessment may
32	32	2.2be made at any time.
33	33	2.3 (d) Assessments of amounts that are not erroneous refunds under paragraph (b) must be
34	34	2.4conducted under sections 289A.38 to 289A.382.
35	35	2.5 Sec. 2. Minnesota Statutes 2024, section 289A.50, subdivision 1, is amended to read:
36	36	2.6 Subdivision 1.General right to refund.(a) Subject to the requirements of this section
37	37	2.7and section 289A.40, a taxpayer who has paid a tax in excess of the taxes lawfully due and
38	38	2.8who files a written claim for refund will be refunded or credited the overpayment of the tax
39	39	2.9determined by the commissioner to be erroneously paid.
40	40	2.10 (b) The claim must specify the name of the taxpayer, the date when and the period for
41	41	2.11which the tax was paid, the kind of tax paid, the amount of the tax that the taxpayer claims
42	42	2.12was erroneously paid, the grounds on which a refund is claimed, and other information
43	43	2.13relative to the payment and in the form required by the commissioner. An income tax, estate
44	44	2.14tax, or corporate franchise tax return, or amended return claiming an overpayment constitutes
45	45	2.15a claim for refund.
46	46	2.16 (c) When, in the course of an examination, and within the time for requesting a refund,
47	47	2.17the commissioner determines that there has been an overpayment of tax, the commissioner
48	48	2.18shall refund or credit the overpayment to the taxpayer and no demand is necessary. If the
49	49	2.19overpayment exceeds $1, the amount of the overpayment must be refunded to the taxpayer.
50	50	2.20If the amount of the overpayment is less than $1, the commissioner is not required to refund.
51	51	2.21In these situations, the commissioner does not have to make written findings or serve notice
52	52	2.22by mail to the taxpayer.
53	53	2.23 (d) If the amount allowable as a credit for withholding, estimated taxes, or dependent
54	54	2.24care exceeds the tax against which the credit is allowable, the amount of the excess is
55	55	2.25considered an overpayment. The refund allowed by section 290.06, subdivision 23, is also
56	56	2.26considered an overpayment. The requirements of section 270C.33 do not apply to the
57	57	2.27refunding of such an overpayment shown on the original return filed by a taxpayer.
58	58	2.28 (e) If the entertainment tax withheld at the source exceeds by $1 or more the taxes,
59	59	2.29penalties, and interest reported in the return of the entertainment entity or imposed by section
60	60	2.30290.9201, the excess must be refunded to the entertainment entity. If the excess is less than
61	61	2.31$1, the commissioner need not refund that amount.
62	62	2.32 (f) If the surety deposit required for a construction contract exceeds the liability of the
63	63	2.33out-of-state contractor, the commissioner shall refund the difference to the contractor.
64	64	2Sec. 2.
65	65	25-05445 as introduced04/22/25 REVISOR JFK/DG 3.1 (g) An action of the commissioner in refunding the amount of the overpayment does not
66	66	3.2constitute a determination of the correctness of the return of the taxpayer.
67	67	3.3 (h) There is appropriated from the general fund to the commissioner of revenue the
68	68	3.4amount necessary to pay refunds allowed under this section.
69	69	3.5 Sec. 3. Minnesota Statutes 2024, section 290.01, subdivision 6, is amended to read:
70	70	3.6 Subd. 6.Taxpayer.The term "taxpayer" means any person or corporation subject to a
71	71	3.7tax imposed by this chapter. For purposes of section 290.06, subdivision 23, the term
72	72	3.8"taxpayer" means an individual eligible to vote in Minnesota under section 201.014.
73	73	3.9 Sec. 4. REPEALER.
74	74	3.10 Minnesota Statutes 2024, sections 10A.322, subdivision 4; 13.4967, subdivision 2; and
75	75	3.11290.06, subdivision 23, are repealed.
76	76	3.12 EFFECTIVE DATE.This section is effective for political contribution refunds claimed
77	77	3.13after April 15, 2026, and the commissioner must not issue refunds after June 30, 2026.
78	78	3.14 Sec. 5. EFFECTIVE DATE.
79	79	3.15 Unless otherwise specified, this act is effective for taxable years beginning after December
80	80	3.1631, 2025.
81	81	3Sec. 5.
82	82	25-05445 as introduced04/22/25 REVISOR JFK/DG 10A.322 SPENDING LIMIT AGREEMENTS.
83	83	Subd. 4.Refund receipt forms; penalty.(a) The board must make available to a political party
84	84	on request and to any candidate for whom an agreement under this section is effective, a supply of
85	85	official refund receipt forms that state in boldface type that:
86	86	(1) a contributor who is given a receipt form is eligible to claim a refund as provided in section
87	87	290.06, subdivision 23; and
88	88	(2) if the contribution is to a candidate, that the candidate has signed an agreement to limit
89	89	campaign expenditures as provided in this section.
90	90	The forms must provide duplicate copies of the receipt to be attached to the contributor's claim.
91	91	(b) The willful issuance of an official refund receipt form or a facsimile of one to any of the
92	92	candidate's contributors by a candidate or treasurer of a candidate who did not sign an agreement
93	93	under this section is subject to a civil penalty of up to $3,000 imposed by the board.
94	94	(c) The willful issuance of an official refund receipt form or a facsimile to an individual not
95	95	eligible to claim a refund under section 290.06, subdivision 23, is subject to a civil penalty of up
96	96	to $3,000 imposed by the board.
97	97	(d) A violation of paragraph (b) or (c) is a misdemeanor.
98	98	13.4967 OTHER TAX DATA CODED ELSEWHERE.
99	99	Subd. 2.Political contribution refund.Certain political contribution refund data in the Revenue
100	100	Department are classified under section 290.06, subdivision 23.
101	101	290.06 RATES OF TAX; CREDITS.
102	102	Subd. 23.Refund of contributions to political parties and candidates.(a) A taxpayer may
103	103	claim a refund equal to the amount of the taxpayer's contributions made in the calendar year to
104	104	candidates and to a political party. The maximum refund for an individual must not exceed $75 and
105	105	for a married couple, filing jointly, must not exceed $150. A refund of a contribution is allowed
106	106	only if the taxpayer files a form required by the commissioner and attaches to the form a copy of
107	107	an official refund receipt form issued by the candidate or party and signed by the candidate, the
108	108	treasurer of the candidate's principal campaign committee, or the chair or treasurer of the party unit,
109	109	after the contribution was received. The receipt forms must be numbered, and the data on the receipt
110	110	that are not public must be made available to the campaign finance and public disclosure board
111	111	upon its request. A claim must be filed with the commissioner no sooner than January 1 of the
112	112	calendar year in which the contribution was made and no later than April 15 of the calendar year
113	113	following the calendar year in which the contribution was made. A taxpayer may file only one claim
114	114	per calendar year. Amounts paid by the commissioner after June 15 of the calendar year following
115	115	the calendar year in which the contribution was made must include interest at the rate specified in
116	116	section 270C.405.
117	117	(b) No refund is allowed under this subdivision for a contribution to a candidate unless the
118	118	candidate:
119	119	(1) has signed an agreement to limit campaign expenditures as provided in section 10A.322;
120	120	(2) is seeking an office for which voluntary spending limits are specified in section 10A.25;
121	121	and
122	122	(3) has designated a principal campaign committee.
123	123	This subdivision does not limit the campaign expenditures of a candidate who does not sign an
124	124	agreement but accepts a contribution for which the contributor improperly claims a refund.
125	125	(c) For purposes of this subdivision, "political party" means a major political party as defined
126	126	in section 200.02, subdivision 7, or a minor political party qualifying for inclusion on the income
127	127	tax or property tax refund form under section 10A.31, subdivision 3a.
128	128	A "major party" or "minor party" includes the aggregate of that party's organization within each
129	129	house of the legislature, the state party organization, and the party organization within congressional
130	130	districts, counties, legislative districts, municipalities, and precincts.
131	131	"Candidate" means a candidate as defined in section 10A.01, subdivision 10, except a candidate
132	132	for judicial office.
133	133	1R
134	134	APPENDIX
135	135	Repealed Minnesota Statutes: 25-05445 "Contribution" means a gift of money.
136	136	(d) The commissioner shall make copies of the form available to the public and candidates upon
137	137	request.
138	138	(e) The following data collected or maintained by the commissioner under this subdivision are
139	139	private: the identities of individuals claiming a refund, the identities of candidates to whom those
140	140	individuals have made contributions, and the amount of each contribution.
141	141	(f) The commissioner shall report to the campaign finance and public disclosure board by each
142	142	August 1 a summary showing the total number and aggregate amount of political contribution
143	143	refunds made on behalf of each candidate and each political party. These data are public.
144	144	(g) The amount necessary to pay claims for the refund provided in this section is appropriated
145	145	from the general fund to the commissioner of revenue.
146	146	(h) For a taxpayer who files a claim for refund via the Internet or other electronic means, the
147	147	commissioner may accept the number on the official receipt as documentation that a contribution
148	148	was made rather than the actual receipt as required by paragraph (a).
149	149	2R
150	150	APPENDIX
151	151	Repealed Minnesota Statutes: 25-05445