HF317

Budget surplus individual income tax credit established.
Legislative Session 94 (2025-2026)

AI Generated Summary

This legislative bill pertains to individual income taxation in Minnesota, introducing a "budget surplus credit." It defines who qualifies for this credit and outlines how it will be calculated and distributed.

Key aspects of the bill include:

  1. Qualifying Taxpayers: These are individuals or married couples who have filed their Minnesota income tax returns on time for a specific tax year (an even-numbered year before a budget report is issued). Dependents, as defined under certain sections of the Internal Revenue Code, do not qualify.

  2. Credit Calculation: The credit a taxpayer receives is calculated based on their tax liability for a particular qualifying year and a percentage that is determined by the amount of the state’s budget surplus.

  3. Payment of Credit: The state revenue commissioner is tasked with determining the credit amount for each qualifying taxpayer and issuing refunds as needed. This process is conducted without requiring taxpayers to file a specific claim for this credit.

  4. Special Provisions for Part-Year Residents: If a taxpayer didn't reside in Minnesota for the entire year, their credit is adjusted proportionately based on the time they lived in the state.

  5. Administrative Details: The bill grants the revenue commissioner the authority to undertake necessary actions to process and distribute these refunds, possibly using private contractors to issue the payments.

  6. Funding: Appropriations for these refunds will be made from the general fund by the end of each odd-numbered year to cover the costs incurred.

Essentially, this bill aims to return a portion of the state’s budget surplus back to taxpayers, providing financial relief based on their previous tax liabilities and the state's fiscal health at the end of a biennium.

Bill text versions

Showing the most recent version. There are  2  total versions. You must be logged in  to view additional bill text versions.

Actions

DateChamberWhereTypeNameCommittee Name
February 13, 2025HouseActionIntroduction and first reading, referred toTaxes

Citations

You must be logged in  to view citations.

Progress through the legislative process

17%
In Committee
Loading…