The bill presented modifies the taxation law in Minnesota, specifically addressing refunds related to individual income tax and corporate franchise tax. It mandates that if taxpayers, including S corporations, partnerships, or larger corporations, pay more in estimated taxes than is due, they are entitled to a refund that includes interest. The interest is calculated from the date each estimated tax payment was made until the date the refund claim is made or the tax due date, whichever comes first. The rate used for calculating the refund interest is the same as the rate used by the commissioner for owed interest calculations.

The bill also outlines procedures for claiming a refund, requiring specific information about the taxpayer and the tax payment. A standard tax return or amended return that shows an overpayment can serve as a claim for a refund. Furthermore, if the commissioner finds during an audit that an overpayment has occurred, they are empowered to refund or credit this overpayment without a formal claim from the taxpayer, provided the overpayment is more than $1. Other specific scenarios involving overpayments, like withholding for entertainment taxes or surety deposits for contractors, are also addressed, ensuring that taxpayers recover excess payments efficiently.

Finally, the bill allows for necessary funds to be appropriated from the general fund to the commissioner of revenue to facilitate these refunds.