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HF2303 (Legislative Session 94 (2025-2026))

Income definition used to calculate homestead credit refunds simplified.

AI Generated Summary

Purpose of the Bill

The purpose of this legislative bill is to simplify the manner in which income is calculated for the purposes of property tax homestead credit refunds in the state of Minnesota.

Main Provisions

  • The bill seeks to amend the Minnesota Statutes, particularly section 290A.03 subdivision 3, to redefine the method of calculating "income" for property tax refund eligibility.
  • It outlines what constitutes "income," including federal adjusted gross income and various types of nontaxable incomes.
  • The bill specifies certain exemptions and adjustments that can be subtracted from the income total for homestead credit refund calculations.
  • Key deductions include exemptions for dependents and for those who are 65 or older, or have a disability.
  • Certain types of income, such as nontaxable scholarship grants, alimony, and some taxable pension funds, are included in the income calculation.
  • The bill clarifies what is excluded from the definition of income, such as specific pensions, surplus food, child support, and veterans' disability payments.

Significant Changes to Existing Law

  • The bill simplifies the income calculation by providing a clearer framework of what needs to be included or excluded.
  • It provides inflation-adjusted references to retirement accounts and plans.
  • It aims to standardize exemptions and deductions eligibility, making the system more streamlined and understandable for claimants.

Relevant Terms

  • Property tax refunds
  • Homestead credit refunds
  • Federal adjusted gross income
  • Nontaxable income
  • Retirement accounts
  • Dependent exemptions
  • Disabilities and senior exemptions
  • Minnesota Statutes
  • Income calculation adjustments

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 12, 2025HouseFloorActionIntroduction and first reading, referred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Clarification on what constitutes income from different sources including nontaxable scholarship or fellowship grants and alimony."
      ],
      "removed": [
        "Certain deductions that were previously considered in calculating income."
      ],
      "summary": "Amends the income definition used to calculate homestead credit refunds under Minnesota Statutes section 290A.03, subdivision 3.",
      "modified": [
        "Adjusts the method of calculating exemptions for dependents and disability considerations."
      ]
    },
    "citation": "290A.03"
  }
]

Sponsors