SF105

Senate File No. 105 is a legislative bill concerning the property tax refund system in Minnesota. It aims to modify the way income is defined for the purposes of calculating property tax refunds. The bill proposes several specific changes to how various types of income are considered:

1. Comprehensive Income Definition: Income for property tax refunds includes federal adjusted gross income along with specific non-taxable income sources such as:

   • Passive income losses that are not disallowed.
   • Discharged farm indebtedness.
   • Public assistance, pensions, Social Security, and veterans' benefits.
   • Nontaxable strike benefits and disability payments.
   • Specific retirement contributions and distributions.
   • Non-taxable scholarships, certain alimony payments, educational expense deductions, and teachers' expenses.

2. Exclusions from Income: Certain amounts are excluded from the income calculation like:

   • Payments from life insurance or gifts.
   • Pensions fully funded by the individual without tax exclusion during the payment years.
   • Government-supported food or aid, child support, restitution payments, and other specific exclusions.

3. Subtractions from Income: The bill allows subtractions based on dependency and other considerations such as disability or reaching age 65.

4. Definitions and Adjustments:

   • Defines terms like "retirement base amount," which considers inflation adjustments for determining deductible amounts.
   • Specifies what constitutes traditional and Roth style retirement accounts, clarifying which ones are considered in the adjusted gross income.

This bill aims to provide a more detailed and specified framework for assessing which aspects of an individual’s income should impact their eligibility and calculation for a property tax refund. The intent is to create a fairer and clearer taxation process by taking into account a broader range of income types and life circumstances.