Minneslate Logo

SF2056 (Legislative Session 94 (2025-2026))

Income definition modification for purposes of a property tax refund

Related bill: HF1643

AI Generated Summary

This bill, S.F. No. 2056, proposes amendments to Minnesota Statutes 2024, section 290A.03, subdivision 3, modifying the definition of income for the purposes of determining eligibility for property tax refunds.

Key Changes in the Bill:

  1. Expanded Definition of Income

    • Includes federal adjusted gross income plus various non-taxable income sources, such as:
      • Passive activity losses
      • Farm debt discharge amounts
      • Public assistance payments
      • Pension, annuity, Social Security, and veterans’ benefits (subject to certain funding conditions)
      • Workers’ compensation & disability income
      • Contributions to retirement accounts (above a certain base amount)
      • Scholarships, alimony, and deductions for tuition and educator expenses

  2. Exclusions from Income

    • Certain amounts will not be counted as income, including:
      • Life insurance proceeds and gifts (under specific tax code sections)
      • Pensions exclusively funded by the taxpayer with already-taxed income
      • Government-provided food and in-kind assistance
      • Child support and veterans’ disability compensation
      • Alimony paid (deductible for the payer)

  3. Dependent & Age-Based Deductions

    • Allows claimants to subtract specific amounts for dependents and for individuals over 65 or with a disability.

  4. Clarifies Key Definitions

    • Establishes what constitutes a retirement account or plan.
    • Defines exemption and retirement base amounts based on federal tax code provisions.

Purpose:

This bill aims to refine eligibility criteria for property tax refunds by updating how income is calculated, thereby impacting homeowners' and renters' refund claims.

Legislative Status:

  • Introduced in the Minnesota Senate
  • Referred to the Taxes Committee for review and further action.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 02, 2025SenateFloorActionIntroduction and first reading
March 02, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Includes nontaxable income and other specific sources in the income definition."
      ],
      "removed": [
        "Excludes specific pension or annuity contributions from income if exclusively funded by the claimant."
      ],
      "summary": "This bill modifies the definition of income for purposes of the property tax refund under section 290A.03.",
      "modified": [
        "Alters the adjustment method for federal adjusted gross income, notably disallowing net operating loss carrybacks or carryforwards."
      ]
    },
    "citation": "290A.03"
  }
]

Sponsors