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SF423 (Legislative Session 94 (2025-2026))

All income tax rates reduction provision

Related bill: HF300

AI Generated Summary

This legislative bill aims to adjust the income tax rates applied to different groups of taxpayers in Minnesota, including married individuals filing jointly, married individuals filing separately, estates, trusts, unmarried individuals, and heads of households. The bill details how these rates are structured across different income ranges to alter the amount of tax collected based on varying income levels. Additionally, adjustments are made for non-residents based on the portion of their income that is tied to Minnesota sources. This legislative change means that taxpayers will see changes in the percentages of their income taxed, which could lead to higher or lower tax bills depending on their income level and tax bracket adjustments mentioned in the bill.

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
January 20, 2025HouseFloorActionIntroduction and first reading
January 20, 2025SenateFloorActionIntroduction and first reading
January 20, 2025HouseFloorActionReferred toTaxes
January 20, 2025SenateFloorActionReferred toTaxes

Citations

 
[
  {
    "analysis": {
      "added": [
        "Modified income tax brackets for various filing statuses."
      ],
      "removed": [
        ""
      ],
      "summary": "This bill modifies the tax rates and income brackets for calculating Minnesota state income tax for individuals, estates, and trusts under section 290.06.",
      "modified": [
        "Adjusted the tax rate for different income brackets."
      ]
    },
    "citation": "290.06",
    "subdivision": "subdivision 2c"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "These subdivisions list additions to federal gross income for Minnesota tax purposes, which are referenced in the tax calculation method for nonresidents.",
      "modified": [
        "Clarified the applicability of additions in the calculation for nonresident taxpayers."
      ]
    },
    "citation": "290.0131",
    "subdivision": "subdivisions 2, 6, 8 to 10, 16, 17, 19, and 20"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "These subdivisions list subtractions from federal gross income for Minnesota tax purposes, which are referenced in the tax calculation method for nonresidents.",
      "modified": [
        "Clarified the applicability of subtractions in the calculation for nonresident taxpayers."
      ]
    },
    "citation": "290.0132",
    "subdivision": "subdivisions 2, 9, 10, 14, 15, 17, 18, 27, 31, and 32"
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Referenced in the context of allocation and assignability provisions for tax purposes.",
      "modified": [
        "Referenced for clarity in nonresident tax calculations."
      ]
    },
    "citation": "290.081",
    "subdivision": ""
  },
  {
    "analysis": {
      "added": [
        ""
      ],
      "removed": [
        ""
      ],
      "summary": "Reference to an election by qualifying entities under this section affecting individual tax calculations.",
      "modified": [
        "Referenced for treatment of tax paid by entities on behalf of shareholders."
      ]
    },
    "citation": "289A.08",
    "subdivision": "subdivision 7a"
  }
]

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