Bill > HF2303

This bill simplifies the definition of income used to calculate homestead credit refunds by modifying the tax calculation method for property tax refunds. Specifically, the bill changes how income is defined by using federal adjusted gross income as the base calculation, and then allowing specific subtractions for dependents and exemptions. The bill streamlines the previous complex definition that included multiple categories of income and exclusions by removing lengthy lists of nontaxable income sources and replacing them with a more straightforward approach. The new calculation allows for subtractions based on the number of dependents (with decreasing multipliers for additional dependents), and provides an additional exemption for claimants or their spouses who are disabled or over 65 years old. The "exemption amount" is defined as the exemption amount under another section of Minnesota tax law, and the changes will be effective for property tax refunds based on taxes payable in 2025. This simplification aims to make the homestead credit refund calculation more transparent and easier to understand for taxpayers.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF2303&ssn=0&y=2025