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SF2263 (Legislative Session 94 (2025-2026))

Income tax subtractions for overtime pay, tips income, bonuses, and winnings from nonprofit lawful gambling organizations establishment

Related bill: HF1115

AI Generated Summary

This bill, S.F. No. 2263, is a proposal in the Minnesota Senate that aims to modify state tax laws related to individual income taxation. The key provisions of the bill include:

  1. Tax Subtractions for Certain Types of Income:

    • It allows taxpayers to subtract overtime pay, tips, bonuses, and winnings from nonprofit lawful gambling organizations from their taxable income.

  2. Definition of Overtime Pay:

    • Overtime pay is defined as wages, salaries, tips, and other employee compensation earned for hours worked beyond the standard maximum workweek applicable under Minnesota law (Chapter 177) or the federal Fair Labor Standards Act (FLSA) (29 U.S.C. § 207).

  3. Changes to Withholding Provisions:

    • The bill makes adjustments to income tax withholding rules in accordance with the new subtractions.

Purpose:

The bill seeks to reduce the taxable income for workers who earn overtime, tips, and bonuses, providing them with potential tax relief.

Status:

  • Introduced in the Minnesota Senate
  • Referred to the Taxes Committee for further consideration.

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Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 05, 2025SenateFloorActionIntroduction and first reading
March 05, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Introduces a subtraction for specific types of income."
      ],
      "removed": [],
      "summary": "This bill amends tax provisions related to individual income under section 290.091.",
      "modified": [
        "Changes to withholding provisions."
      ]
    },
    "citation": "290.91"
  },
  {
    "analysis": {
      "added": [
        "A new subdivision affecting withholding on different income types."
      ],
      "removed": [],
      "summary": "This bill modifies the withholding tax provisions under section 290.92.",
      "modified": []
    },
    "citation": "290.92"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Relates to the definition of overtime pay under the Fair Labor Standards Act.",
      "modified": []
    },
    "citation": "29 U.S.C. § 207"
  }
]

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