Bill > SF1096

This bill modifies Minnesota's tax refund regulations by requiring tax refunds to include interest calculated on estimated tax payments for S corporations, partnerships, and corporations. Specifically, the bill mandates that when taxpayers receive a refund, they will now be eligible to receive interest on estimated tax installments from the date the payment was made until either the refund claim date or the tax due date. The interest rate for these refunded amounts will be the same rate used for interest paid to the state tax commissioner. This change applies to tax years beginning after December 31, 2024, and aims to provide more comprehensive financial compensation to taxpayers who may have overpaid their estimated taxes. The bill amends existing tax code to ensure that taxpayers are more fully reimbursed for their advance tax payments by including interest calculations in the refund process, which could potentially provide a small but meaningful financial benefit to businesses and individuals who make estimated tax payments.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF1096&ssn=0&y=2025