Bill > SF938

This bill increases the general subtraction amount for Minnesota estate taxes from the previous tiered system (which ranged from $1,200,000 to $3,000,000 depending on the year of death) to a flat $6,000,000 for all estates. Specifically, the bill modifies two sections of Minnesota tax law to establish this new threshold. The changes allow estates of decedents dying after June 30, 2025, to subtract up to $6,000,000 from their taxable estate before calculating state estate taxes. Additionally, the bill maintains a provision that allows for an extra subtraction of up to $2,000,000 for qualified small business and qualified farm property. This means that a qualifying estate could potentially subtract up to $8,000,000 before being subject to Minnesota estate taxes. The purpose of this bill appears to be providing greater tax relief for estates by significantly raising the threshold at which estate taxes become applicable, which could help protect family-owned businesses and farms from substantial tax burdens upon the death of an owner.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF0938&ssn=0&y=2025