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HF1643 (Legislative Session 94 (2025-2026))

Definition of income modified for purposes of the property tax refund.

Related bill: SF2056

AI Generated Summary

This bill, H.F. No. 1643, introduced in the Minnesota House of Representatives by Rep. Wolgamott, seeks to amend the state's property tax refund regulations by modifying the definition of income under Minnesota Statutes 2024, section 290A.03, subdivision 3.

Key Provisions:

  1. Expanded Definition of Income

    • Includes federal adjusted gross income as a base.
    • Adds various forms of nontaxable income, including:
      • Passive activity losses allowed under the Internal Revenue Code (IRC).
      • Discharge of farm debt.
      • Pension, Social Security, and veterans' benefits (unless fully self-funded).
      • Public assistance, workers' compensation, disability payments, and strike benefits.
      • Certain retirement withdrawals and individual retirement account (IRA) contributions.
      • Scholarships, alimony, and education-related deductions.

  2. Exclusions from Income

    • Excludes:
      • Life insurance and inheritance proceeds.
      • Fully self-funded pensions.
      • Government-supplied food or relief.
      • Child support payments.
      • Veterans’ disability compensation.
      • Certain net operating loss carryforwards.

  3. Deductions Allowed from Income

    • Permits deductions for dependents and individuals with a disability or aged 65+.

  4. Definitions Added or Clarified

    • Defines terms such as "exemption amount," "retirement base amount," and "traditional or Roth-style retirement accounts".

Purpose of the Bill:

This bill modifies what types of income are considered when determining property tax refund eligibility, potentially affecting lower-income taxpayers, retirees, and those receiving public benefits.

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Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 26, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Includes clarification on passive activity loss and specific exemptions related to retirement contributions."
      ],
      "removed": [
        "Simplification of the definition by eliminating unnecessary existing exemptions."
      ],
      "summary": "This bill modifies the definition of income for the purpose of the property tax refund under section 290A.03.",
      "modified": [
        "Adjusts definitions of income to align with federal law, notably changes related to retirement accounts."
      ]
    },
    "citation": "290A.03"
  }
]

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