Bill > HF453

This bill modifies the definition of income for the purposes of calculating property tax refunds in Minnesota by making several technical changes to how retirement account distributions are treated. Specifically, the bill clarifies the treatment of distributions from traditional and Roth-style retirement accounts, ensuring that distributions from Roth-style retirement accounts are explicitly excluded from income calculations for property tax refund purposes. The bill adds a new definition for "Roth style retirement account or plan" to include Roth individual retirement accounts (section 408A of the Internal Revenue Code) and designated Roth contributions in retirement plans like 401(k), 403(b), and 457 plans. Previously, the law was less clear about the treatment of Roth account distributions. The changes will apply to property tax refund claims for taxes payable in 2025 and subsequent years, providing more clarity and potentially beneficial tax treatment for retirees and those with retirement savings. The modification aims to create a more precise and comprehensive approach to defining income for property tax refund calculations.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF0453&ssn=0&y=2025