Bill > SF2263

This bill creates new tax subtraction provisions for Minnesota taxpayers, specifically addressing overtime pay, tips income, bonus pay, and winnings from nonprofit lawful gambling organizations. Under the proposed changes, individuals can subtract from their taxable income: (1) overtime pay, which is defined as wages earned for hours worked beyond the standard workweek as specified in federal labor laws; (2) tips reported to employers or the IRS, following specific reporting requirements in the Internal Revenue Code; (3) bonus remuneration that is not considered regular wages, as defined by federal regulations; and (4) winnings and prizes from organizations licensed under Minnesota's gambling laws. These tax subtractions will apply to taxable years beginning after December 31, 2024, and are accompanied by related amendments to withholding provisions, including an exemption from withholding requirements for tip income. The bill aims to provide tax relief for workers by reducing their taxable income in these specific categories, potentially allowing individuals to keep more of their earnings.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=Senate&f=SF2263&ssn=0&y=2025