HF2303 (Legislative Session 94 (2025-2026))
Income definition used to calculate homestead credit refunds simplified.
AI Generated Summary
This Minnesota House bill (H.F. No. 2303), authored by Representative Norris, proposes amendments to Minnesota Statutes 2024, Section 290A.03, Subdivision 3 to simplify the income definition used for calculating homestead credit refunds within the property tax refund system.
Key Changes Proposed:
Clarifies "Income" Definition:
- Income includes federal adjusted gross income (AGI) (as defined by the Internal Revenue Code) with certain subtractions and additions.
- Dependents and taxpayers aged 65 or older (or with disabilities) are allowed specific income subtractions based on exemption amounts.
- Income includes federal adjusted gross income (AGI) (as defined by the Internal Revenue Code) with certain subtractions and additions.
Items Included in Income Calculation:
- Non-taxable income, passive activity losses, farm debt relief, cash public assistance, pensions & annuities, Social Security benefits, veterans' benefits, workers’ compensation, strike benefits, disability income, and certain retirement distributions.
- Alimony received, non-taxable scholarships, and certain educator expense deductions.
- Non-taxable income, passive activity losses, farm debt relief, cash public assistance, pensions & annuities, Social Security benefits, veterans' benefits, workers’ compensation, strike benefits, disability income, and certain retirement distributions.
Items Excluded from Income Calculation:
- Life insurance proceeds, certain pension distributions (if exclusively funded by the taxpayer), surplus food or relief aid, Minnesota property tax relief, child support payments, and certain veterans' disability compensation.
- Contributions to traditional or Roth retirement plans (up to a certain base amount).
- Life insurance proceeds, certain pension distributions (if exclusively funded by the taxpayer), surplus food or relief aid, Minnesota property tax relief, child support payments, and certain veterans' disability compensation.
Adjustments to Deductions:
- Subtractions for dependents remain unchanged but are reordered for clarity.
- The bill defines terms like exemption amount, retirement base amount, and eligible retirement plans.
Impact of the Bill:
- Simplifies and standardizes the treatment of income for calculating the homestead credit refund.
- Ensures consistency with federal tax definitions while adjusting for Minnesota-specific tax relief policies.
- Makes it easier for taxpayers to determine eligibility and refund amounts for property tax refunds.
In essence, this bill streamlines the income calculation process for property tax refunds, making it easier for Minnesota residents to understand and apply for tax relief.
Bill text versions
- Introduction PDF file
Actions
| Date | Chamber | Where | Type | Name | Committee Name |
|---|---|---|---|---|---|
| March 12, 2025 | House | Floor | Action | Introduction and first reading, referred to | Taxes |
| March 12, 2025 | House | Floor | Action | Introduction and first reading, referred to | Taxes |
Citations
[
{
"analysis": {
"added": [
"Clarification of subtraction for dependents and spousal exemptions."
],
"removed": [],
"summary": "The bill amends the existing definition of income for property tax refunds under Minnesota Statutes section 290A.03, subdivision 3.",
"modified": [
"Revises income calculation by adjusting for numerous federal tax-related parameters."
]
},
"citation": "290A.03",
"subdivision": "subdivision 3"
}
]