SF2263

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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