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SF1964 (Legislative Session 94 (2025-2026))

Governor Tim Walz Rebate Check Act of 2023 establishment and appropriation

AI Generated Summary

The Governor Tim Walz Rebate Check Act of 2023 is a Minnesota bill proposing direct payments to eligible individuals using a portion of the state's budget surplus.

Key Provisions:

  1. Purpose:

    • The bill aims to return half of the budget surplus to Minnesota taxpayers who have been overtaxed.
    • It is intended to provide financial relief amid high inflation.

  2. Eligibility:

    • Minnesota residents who filed a 2021 state income tax return by October 15, 2022.
    • Individuals who submitted property tax refund claims (either for 2021 rent or 2022 property taxes) by December 31, 2022.
    • For part-year residents, payment will be proportional to their 2021 taxable income percentage.

  3. Payment Amounts:

    • Married couples filing jointly: a specified amount (not detailed in the excerpt).
    • All other filers: a specified amount (not detailed in the excerpt).

  4. Payment Process:

    • Automatically issued by the state’s Department of Revenue (no need to apply).
    • Payments are made by check, electronic funds transfer, or debit cards.
    • Not counted as taxable income or as a resource for state assistance programs.
    • Payments cannot be used to offset unpaid taxes or debts individuals owe to the state.

  5. Expiration and Recovery:

    • If a recipient dies before receiving the payment, it is canceled.
    • Unclaimed payments (checks uncashed, debit cards unused for two years) revert to the state general fund.
    • Fraudulently cashed checks or unauthorized debit card withdrawals may be recovered by the Department of Revenue.

  6. Administration and Funding:

    • The Department of Revenue is authorized to contract private vendors for processing payments.
    • The funds for payments and administrative costs are appropriated from the state’s general fund.

This bill primarily seeks to return surplus tax revenues to Minnesota residents through direct rebate checks, ensuring the funds are distributed efficiently while preventing fraud and misuse.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 26, 2025SenateFloorActionIntroduction and first reading
February 26, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Establishes eligibility criteria for direct payment based on tax return filing status."
      ],
      "removed": [],
      "summary": "Defines eligibility for the direct payment based on Minnesota residency as per section 290.01, subdivision 7.",
      "modified": []
    },
    "citation": "290.01"
  },
  {
    "analysis": {
      "added": [
        "Allows eligibility for the direct payment based on property tax and rent refund claims."
      ],
      "removed": [],
      "summary": "Cites eligibility based on claims filed under chapter 290A.04 for property tax refunds.",
      "modified": []
    },
    "citation": "290A.04"
  },
  {
    "analysis": {
      "added": [
        "Introduces calculation method for partial-year residents using section 290.06."
      ],
      "removed": [],
      "summary": "Calculates direct payment proportion as per section 290.06, subdivision 2c.",
      "modified": []
    },
    "citation": "290.06"
  },
  {
    "analysis": {
      "added": [
        "Specifies the classification of the direct payment for legal purposes."
      ],
      "removed": [],
      "summary": "Classifies the direct payment as a Minnesota tax law according to section 270B.01, subdivision 8.",
      "modified": []
    },
    "citation": "270B.01"
  },
  {
    "analysis": {
      "added": [
        "Excludes direct payment from being classified as income or resource for other benefit calculations."
      ],
      "removed": [],
      "summary": "Clarifies that the payment is not considered assistance based on need per section 550.37, subdivision 14.",
      "modified": []
    },
    "citation": "550.37"
  },
  {
    "analysis": {
      "added": [
        "Sets recovery processes for unauthorized payments or forgeries."
      ],
      "removed": [],
      "summary": "Allows recovery of unauthorized payments using procedures from section 270C.33.",
      "modified": []
    },
    "citation": "270C.33"
  },
  {
    "analysis": {
      "added": [
        "Permits exceptional actions for payment issuance, bypassing standard procedures."
      ],
      "removed": [],
      "summary": "Allows commissioner actions notwithstanding section 9.031 for payment processing.",
      "modified": []
    },
    "citation": "9.031"
  },
  {
    "analysis": {
      "added": [
        "Enables alternate payment methods and vendor contracts."
      ],
      "removed": [],
      "summary": "Authorizes actions beyond section 16B.49 standards for payment issuance.",
      "modified": []
    },
    "citation": "16B.49"
  }
]

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