Bill > HF317

This bill establishes a budget surplus individual income tax credit for Minnesota taxpayers, providing a refund to qualifying taxpayers based on the state's budget surplus. Specifically, the bill defines a "qualifying taxpayer" as an individual or married couple who filed a Minnesota income tax return within six months of the due date in an odd-numbered year and reported a tax liability, excluding dependents. The credit amount will be calculated by multiplying the taxpayer's tax liability by a percentage determined by the unrestricted balance at the close of the biennium, divided by the aggregate tax liability of all qualifying taxpayers. By January 31 of each odd-numbered year, the commissioner of revenue will determine and pay refunds to qualifying taxpayers. For part-year Minnesota residents, the credit will be prorated based on their time as a state resident. The bill allows the commissioner of revenue to take necessary actions to process and distribute these refunds, including potentially contracting with private vendors. The refunds will be appropriated from the general fund, and the provision is set to be effective for refunds due by December 31, 2027. Notably, taxpayers will not be required to file a separate claim for this refund, as it will be processed automatically based on available tax records.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0317&ssn=0&y=2025