HF 4626

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/28/2022 02:39pm

A bill for an act
relating to taxation; proposing onetime direct payments to taxpayers; appropriating
money.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1. new text begin DIRECT PAYMENT; APPROPRIATION.
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new text begin (a) The following individuals are eligible for a direct payment:
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new text begin (1) an individual who was a resident of Minnesota, as defined in Minnesota Statutes,
section 290.01, subdivision 7, for any part of 2020, and filed a 2020 Minnesota individual
income tax return by October 15, 2021; and
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new text begin (2) an individual who was eligible for and who filed a claim for refund by December
31, 2021, under Minnesota Statutes, chapter 290A.04, subdivision 2, for property taxes
payable in 2021 or subdivision 3, for rent constituting property taxes paid in 2020.
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new text begin (b) An individual is not eligible for a direct payment if the individual's taxable net income,
as defined in Minnesota Statutes, section 290.01, subdivision 22, as reported on the
individual's original 2020 Minnesota individual income tax return exceeded:
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new text begin (1) $164,400 in the case of a single individual filer;
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new text begin (2) $273,470 in the case of a married individual who filed a joint return;
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new text begin (3) $218,540 in the case of an individual who filed as head of household; or
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new text begin (4) $136,735 in the case of a married individual who filed a separate return.
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new text begin (c) The direct payment is equal to:
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new text begin (1) $500 for a single filer or a married individual who filed a separate return; and
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new text begin (2) $1,000 for a married couple who filed a joint return or an individual who filed as
head of household.
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new text begin (d) For an individual who was a resident of Minnesota for less than the entire year, the
direct payment equals the direct payment under paragraph (c) for their filing status multiplied
by the percentage determined pursuant to Minnesota Statutes, section 290.06, subdivision
2c, paragraph (e), as calculated on their original 2020 individual income tax return.
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new text begin (e) A direct payment under this section shall be paid by the commissioner of revenue
based on information available in the commissioner's records. A person eligible for a direct
payment does not have to file a claim to receive the payment.
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new text begin (f) The commissioner of revenue shall pay individuals who filed a joint income tax return
or joint property tax refund return for 2020 a joint direct payment.
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new text begin (g) The direct payment is a "Minnesota tax law" for purpose of Minnesota Statutes,
section 270B.01, subdivision 8.
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new text begin (h) The commissioner of revenue must not apply, and must not certify to another agency
to apply, a payment under this section to any unpaid tax or nontax debt owed by an individual
who is paid a direct payment.
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new text begin (i) A payment under this section is not considered income of a recipient in determining
their Minnesota individual income tax, any Minnesota individual income tax credits, the
Minnesota property tax refund, or the Minnesota senior citizen property tax deferral. A
direct payment must not be counted as income or as an asset, personal property, or resource
when determining eligibility for any program administered by the Department of Human
Services. A direct payment is not assistance based on need for purposes of Minnesota
Statutes, section 550.37, subdivision 14.
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new text begin (j) If an individual eligible to receive a direct payment dies prior to the issuance of the
direct payment the right to the payment lapses.
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new text begin (k) If the commissioner of revenue cannot locate an individual entitled to a direct payment
within two years of the date that the original check or warrant was issued, or if an individual
to whom a direct payment was made has not cashed the check or warrant within two years
of the date that the original check or warrant was issued, the right to the payment lapses. If
an individual to whom a direct payment was made by debit card has not withdrawn from
the card the total amount of the direct payment within two years of the date of issuance of
the original debit card, the right to any remaining balance lapses to the state general fund.
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new text begin (l) The commissioner of revenue may recover a previously made direct payment if the
commissioner determines after the direct payment has been made that the individual or
married couple had taxable net income for 2020 that exceeded a threshold in paragraph (b).
The recovery may be made using the same procedures used in assessing additional tax under
Minnesota Statutes, section 270C.33. The recovery must be made within the period of
limitation for assessing additional tax for 2020 for the person who was paid the direct
payment. The assessment may be made on the same order of assessment that adjusts the
income tax liability of the direct payment recipient. If a direct payment check or warrant is
cashed by someone other than the payee or payees of the check or warrant, and the
commissioner of revenue determines that the check has been forged or improperly endorsed,
the commissioner may recover the amount of the check or warrant from the endorsee or
forger. The recovery may be made using the same procedures used in assessing additional
tax under Minnesota Statutes, section 270C.33. The assessment must be made within two
years after the check or warrant is cashed. If a direct payment was made through a debit
card and the commissioner determines that the card was activated and accessed by an
unauthorized person, the commissioner may recover from the unauthorized person the
amount of any unauthorized withdrawals. The recovery may be made using the same
procedures used in assessing additional tax under Minnesota Statutes, section 270C.33. The
assessment must be made within two years after the last unauthorized withdrawal.
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new text begin (m) Notwithstanding Minnesota Statutes, sections 9.031, 16B.49, chapter 16C, and any
other law to the contrary, the commissioner of revenue may take whatever actions the
commissioner deems necessary to pay the direct payment required by this section, and may,
in consultation with the commissioner of management and budget, contract with a private
vendor or vendors to process, print, mail, or deliver the checks, warrants, or debit cards
required under this section and receive and disburse state funds to make the direct payments
by check, warrant, electronic funds transfer, or debit card.
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new text begin (n) The amount necessary to make the direct payments provided in this section is
appropriated from the general fund to the commissioner of revenue in fiscal year 2022 and
is available until June 30, 2023.
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new text begin (o) $7,752,000 in fiscal year 2022 and $215,000 in fiscal year 2023 are appropriated
from the general fund to the commissioner of revenue to administer this section. Any
unencumbered balance remaining on June 30, 2022, does not cancel but is available for
expenditure by the commissioner of revenue until June 30, 2023. These are onetime
appropriations that are not added to the agency's budget base.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
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