Purpose of the Bill

The bill aims to amend Minnesota's taxation laws to expand the renters' credit. This credit is designed to provide financial relief to renters by bringing it in line with the homestead credit refund. The adjustment seeks to ensure parity and fairness between these two forms of property tax relief.

Main Provisions

• Renters' Credit Calculation: The bill modifies the way in which the renters' credit is calculated. Renters can claim a credit if their rent exceeds specific percentages of their household income.
• Income Brackets and Percentages: The bill outlines income brackets with corresponding percentages that dictate how much of their income renters must pay before qualifying for the credit. It includes graduated percentages and maximum credit amounts based on varying levels of household income.
• Annual Adjustments: The Commissioner of the Minnesota Department of Revenue is tasked with annually adjusting the income thresholds and maximum refund amounts for inflation or other economic factors, ensuring the program remains relevant and effective.

Significant Changes

• Increased Support for Renters: This amendment aligns the renters' credit more closely with the homestead credit refund, potentially increasing the number of renters eligible for state support and the amount they can receive.
• Updated Income Thresholds: By revising income thresholds and percentages, the bill seeks to make the credit more accessible to a broader range of income levels.

Relevant Terms

renters' credit, property taxes, homestead credit refund, income brackets, household income, tax credit, Minnesota Department of Revenue.