SF1096

SF1096 (Legislative Session 94 (2025-2026))

Individual income tax and corporate franchise tax refunds modifications; interest calculated on payments of estimated tax inclusion in refund requirement

Related bill: HF759

AI Generated Summary

This bill, introduced in the Minnesota Senate, proposes changes to taxation rules, specifically focusing on the calculation of refunds. Under this bill, if a taxpayer or a corporation pays more taxes than required, they are entitled to a refund of the overpaid amount with interest. The interest on the overpayment starts from the date of each installment of estimated tax payment up until the date they file a refund claim or the due date for the tax payment.

The bill details the process and requirements for taxpayers to file a claim for a refund, including the necessary information to be provided and the timeline during which the commissioner must act on the refund. Moreover, certain small overpayment instances (less than $1) do not require a refund.

Other specific circumstances covered include situations involving withholding taxes, entertainment taxes, and surety deposits for construction contracts. Finally, the bill appropriates funds from the state's general fund to the commissioner of revenue to cover the costs of these refunds.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 05, 2025	Senate	Floor	Action	Introduction and first reading
February 05, 2025	Senate	Floor	Action	Referred to	Taxes

Citations

[
  {
    "analysis": {
      "added": [
        "Requires interest to be calculated for each installment of estimated tax paid by corporations under sections 289A.25 and 289A.26."
      ],
      "removed": [
        "None."
      ],
      "summary": "This bill modifies the calculation of interest on tax refunds under section 289A.50.",
      "modified": [
        "Clarifies the interest rate used is the same as under section 289A.55, subdivision 1."
      ]
    },
    "citation": "289A.50"
  },
  {
    "analysis": {
      "added": [
        "None."
      ],
      "removed": [
        "None."
      ],
      "summary": "Referenced concerning interest calculations on estimated tax payments by S corporations or partnerships.",
      "modified": [
        "None."
      ]
    },
    "citation": "289A.25"
  },
  {
    "analysis": {
      "added": [
        "None."
      ],
      "removed": [
        "None."
      ],
      "summary": "Referenced concerning interest calculations on estimated tax payments by corporations.",
      "modified": [
        "None."
      ]
    },
    "citation": "289A.26"
  },
  {
    "analysis": {
      "added": [
        "None."
      ],
      "removed": [
        "None."
      ],
      "summary": "Cited regarding overpayment refund under section 290.06, subdivision 23.",
      "modified": [
        "None."
      ]
    },
    "citation": "290.06"
  },
  {
    "analysis": {
      "added": [
        "None."
      ],
      "removed": [
        "None."
      ],
      "summary": "Not applicable to the refunding of overpayments shown on original returns.",
      "modified": [
        "Clarifies applicability to refunds shown on original returns."
      ]
    },
    "citation": "270C.33"
  },
  {
    "analysis": {
      "added": [
        "None."
      ],
      "removed": [
        "None."
      ],
      "summary": "Referenced concerning refunds of excess entertainment tax withheld.",
      "modified": [
        "None."
      ]
    },
    "citation": "290.9201"
  },
  {
    "analysis": {
      "added": [
        "None."
      ],
      "removed": [
        "None."
      ],
      "summary": "Determines the interest rate applicable for calculating interest on refunded tax amounts.",
      "modified": [
        "Clarifies use for determining interest rate on refunds."
      ]
    },
    "citation": "289A.55"
  }
]