HF1643 (Legislative Session 94 (2025-2026))
Definition of income modified for purposes of the property tax refund.
Related bill: SF2056
AI Generated Summary
This bill, H.F. No. 1643, modifies the definition of "income" for the purpose of determining eligibility for the Minnesota property tax refund. It amends Minnesota Statutes 2024, section 290A.03, subdivision 3.
Key Provisions:
Expanded Definition of Income:
- Includes federal adjusted gross income (AGI) and additional non-taxable income sources such as:
- Passive activity losses not disallowed by the IRS.
- Excluded discharge of qualified farm debts.
- Public assistance, Social Security, veterans' benefits, pensions, and annuities.
- Interest from government bonds.
- Workers' compensation, disability income, and nontaxable strike benefits.
- Lump-sum distributions, IRA contributions, deferred compensation, and certain deductions.
- Certain non-taxable scholarships, alimony received, and education expense deductions.
- Includes federal adjusted gross income (AGI) and additional non-taxable income sources such as:
Income Exclusions:
- Some sources of income are not included for property tax refund calculations, such as:
- Life insurance proceeds and inheritances.
- Pensions or annuities fully funded after-tax.
- Contributions to retirement accounts, up to a certain limit.
- Government-provided food or relief in kind.
- Child support, veterans' disability compensation, and certain restitution payments.
- Alimony paid.
- Some sources of income are not included for property tax refund calculations, such as:
Adjustments for Dependents & Age/Disability:
- Deduction amounts based on the number of dependents and whether the filer (or spouse) is 65 or older or has a disability.
- Uses "exemption amount" based on income tax provisions to determine deductions.
Definitions Clarified:
- Provides specific definitions for exemption amount, retirement base amount, and types of eligible retirement accounts.
Effect of the Bill:
- Broadens income calculations for property tax refund eligibility.
- Excludes certain types of income to provide a fairer calculation.
- Includes adjustments for dependents and disability/age.
- Could impact who qualifies for property tax refunds and how much refund they may receive.
This bill primarily affects homeowners and renters in Minnesota who apply for property tax refunds based on income level.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| February 26, 2025 | House | Floor | Action | Introduction and first reading, referred to | Taxes |
| February 26, 2025 | House | Floor | Action | Introduction and first reading, referred to | Taxes |
Citations
[
{
"analysis": {
"added": [],
"removed": [],
"summary": "This bill modifies the definition of income for purposes of the property tax refund under section 290A.03.",
"modified": [
"Clarifies income calculation by explicitly defining exclusions and subtractions."
]
},
"citation": "290A.03",
"subdivision": "subdivision 3"
}
]