Bill > HF759

This bill modifies how tax refunds are calculated for individual income and corporate franchise taxes, specifically addressing interest on estimated tax payments. The bill amends Minnesota Statutes to require that when a taxpayer receives a tax refund, the refund must include interest on estimated tax installments paid during the tax year. The interest will be calculated from the date each estimated tax payment was made until either the date the refund claim is submitted or the tax due date, whichever is earlier. The interest rate used will be the same rate the state uses for interest paid to the tax commissioner. The new provisions will apply to refunds for tax years beginning after December 31, 2024, meaning taxpayers will be able to receive additional compensation for their estimated tax payments if they overpay. This change aims to provide more fairness in tax refund calculations by compensating taxpayers for the timing of their estimated tax payments.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0759&ssn=0&y=2025