SF1096

SF1096 (Legislative Session 94 (2025-2026))

Individual income tax and corporate franchise tax refunds modifications; interest calculated on payments of estimated tax inclusion in refund requirement

Related bill: HF759

AI Generated Summary

This bill, introduced in the Minnesota Senate, proposes changes to taxation rules, specifically focusing on the calculation of refunds. Under this bill, if a taxpayer or a corporation pays more taxes than required, they are entitled to a refund of the overpaid amount with interest. The interest on the overpayment starts from the date of each installment of estimated tax payment up until the date they file a refund claim or the due date for the tax payment.

The bill details the process and requirements for taxpayers to file a claim for a refund, including the necessary information to be provided and the timeline during which the commissioner must act on the refund. Moreover, certain small overpayment instances (less than $1) do not require a refund.

Other specific circumstances covered include situations involving withholding taxes, entertainment taxes, and surety deposits for construction contracts. Finally, the bill appropriates funds from the state's general fund to the commissioner of revenue to cover the costs of these refunds.

Bill text versions

Introduction PDF file

Actions

Date	Chamber	Where	Type	Name	Committee Name
February 05, 2025	House	Floor	Action	Introduction and first reading
February 05, 2025	Senate	Floor	Action	Introduction and first reading
February 05, 2025	House	Floor	Action	Referred to	Taxes
February 05, 2025	Senate	Floor	Action	Referred to	Taxes

Citations

[
  {
    "analysis": {
      "added": [
        "Interest calculated on estimated tax payments must be included in refunds."
      ],
      "removed": [
        "Requirements for written findings in cases of small overpayments."
      ],
      "summary": "This bill amends the procedures for general refund rights related to overpayments of taxes under section 289A.50, subdivision 1.",
      "modified": [
        "Clarifies that a tax return claiming an overpayment constitutes a refund claim."
      ]
    },
    "citation": "289A.50",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This existing section is referenced regarding interest calculation on S corporation or partnership tax payments.",
      "modified": [
        "Specifies the interest calculation applies to estimated tax under this section."
      ]
    },
    "citation": "289A.25",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This existing section is referenced regarding interest calculation on corporate tax payments.",
      "modified": [
        "Specifies the interest calculation applies to estimated tax under this section."
      ]
    },
    "citation": "289A.26",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This existing section is referenced to determine the interest rate for refunds.",
      "modified": [
        "The interest rate used for refund calculations matches the rate paid to the commissioner under this section."
      ]
    },
    "citation": "289A.55",
    "subdivision": "subdivision 1"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "The reference to refunds under section 290.06, subdivision 23 is confirmed as an overpayment.",
      "modified": [
        "Acknowledges refund as an overpayment in context of withholding credits."
      ]
    },
    "citation": "290.06",
    "subdivision": "subdivision 23"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Referenced with regard to handling entertainment tax overpayment refunds.",
      "modified": [
        "Specifies conditions under which entertainment tax excess is refunded."
      ]
    },
    "citation": "290.9201",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "This section's requirements for refund processing do not apply to certain overpayments.",
      "modified": [
        "Exempts specific refund processing from general requirements."
      ]
    },
    "citation": "270C.33",
    "subdivision": ""
  }
]