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SF2263 (Legislative Session 94 (2025-2026))

Income tax subtractions for overtime pay, tips income, bonuses, and winnings from nonprofit lawful gambling organizations establishment

Related bill: HF1115

AI Generated Summary

This bill, S.F. No. 2263, proposes amendments to Minnesota's tax code to provide individual income tax subtractions for certain types of earnings. Specifically, it allows taxpayers to subtract overtime pay, tips, bonuses, and winnings from nonprofit lawful gambling organizations from their taxable income. Additionally, the bill modifies withholding provisions related to these earnings.

Key provisions include:

  • Overtime Pay Subtraction: Wages, salaries, tips, and other compensation earned for overtime work beyond the maximum workweek (as defined by state or federal law) would be excluded from taxable income.
  • Tax Subtractions for Tips, Bonuses, and Gambling Winnings: Similar tax deductions are proposed for these income sources.
  • Changes to Withholding Regulations: Adjustments to tax withholding requirements to reflect these new subtractions.

This bill aims to reduce state income tax burdens on workers who earn additional income through overtime, tips, and bonuses, as well as on individuals who win money from nonprofit gambling activities.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
March 05, 2025HouseFloorActionIntroduction and first reading
March 05, 2025SenateFloorActionIntroduction and first reading
March 05, 2025HouseFloorActionReferred toTaxes
March 05, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "This bill amends the alternative minimum tax provisions under section 290.091.",
      "modified": [
        "Changes calculations for adjusted gross income related to minimum tax."
      ]
    },
    "citation": "290.091",
    "subdivision": "subdivision 2"
  },
  {
    "analysis": {
      "added": [
        "Introduces a new subdivision addressing treatment of winnings from nonprofit lawful gambling organizations."
      ],
      "removed": [],
      "summary": "This legislation involves withholding adjustments under section 290.92.",
      "modified": []
    },
    "citation": "290.92",
    "subdivision": "subdivision 2a"
  }
]

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