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HF759 (Legislative Session 94 (2025-2026))

Individual income tax and corporate franchise tax refunds modified, and refunds required to include interest calculate on payments of estimated tax.

Related bill: SF1096

AI Generated Summary

This bill proposes changes to how tax refunds are handled in Minnesota. Specifically, it seeks to amend the law so that when taxpayers—like S corporations, partnerships, and other corporations—overpay on their taxes, they should be refunded not only the excess amount but also interest. This interest will be calculated from the time each estimated tax payment was made until either the refund request is filed or the tax due date arrives. The bill also stipulates certain procedures and requirements for claiming such refunds and clarifies the scenarios under which the commissioner must automatically issue refunds without requiring action from the taxpayer. Additionally, it includes provisions about dealing with overpayments in the context of withholding and certain special taxes, like entertainment tax. Funds are to be allocated from the general budget to allow the commissioner to handle these refunds.

Bill text versions

Actions

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

Citations

 
[
  {
    "analysis": {
      "added": [
        "Includes interest calculated on each installment of estimated tax paid by S corporations, partnerships, or corporations."
      ],
      "removed": [],
      "summary": "This bill amends the general right to refund for overpaid taxes under section 289A.50.",
      "modified": [
        "Clarifications on when interest is calculated and refunded as part of overpayment."
      ]
    },
    "citation": "289A.50"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Refers to the installment of estimated taxes paid by S corporations or partnerships.",
      "modified": []
    },
    "citation": "289A.25"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Refers to installments of estimated taxes paid by corporations.",
      "modified": []
    },
    "citation": "289A.26"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Defines the interest rate used for calculating refunded interest.",
      "modified": []
    },
    "citation": "289A.55"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "The refund allowed under section 290.06, subdivision 23 is also considered an overpayment.",
      "modified": []
    },
    "citation": "290.06"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Excludes application of section 270C.33 requirements on refunding overpayment from the original return.",
      "modified": []
    },
    "citation": "270C.33"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Refers to taxes imposed on entertainment entities.",
      "modified": []
    },
    "citation": "290.9201"
  }
]

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