Bill > SF105

This bill modifies the definition of income for property tax refund purposes in Minnesota by making several key changes to how retirement account distributions are treated. Specifically, the bill removes language about "Roth style" retirement accounts from certain sections and then explicitly adds them back in, effectively clarifying how Roth retirement account distributions should be considered when calculating income for property tax refund eligibility. The bill creates a new, specific definition for "Roth style retirement account or plan" as including Roth Individual Retirement Accounts (section 408A of the Internal Revenue Code) and designated Roth contributions in separate accounts in retirement plans under sections 401, 403, and 457 of the Internal Revenue Code. Notably, the bill excludes Roth style retirement account distributions from the definition of income to the extent they are not already included in federal adjusted gross income, which could potentially increase the amount of property tax refund for some taxpayers. The changes will be effective for property tax refund claims based on property taxes payable in 2025 and subsequent years, providing clarity and potentially beneficial treatment for individuals with Roth retirement accounts.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0105&ssn=0&y=2025