HF 4762

as introduced - 92nd Legislature (2021 - 2022) Posted on 04/07/2022 11:33am

A bill for an act
relating to taxation; individual income; establishing an income tax holiday for
police officers; appropriating money.

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

Section 1. new text begin INCOME TAX HOLIDAY FOR POLICE OFFICERS.
new text end

new text begin (a) Notwithstanding any law to the contrary, an individual taxpayer who was employed
as a peace officer in a taxable year and meets the requirements of paragraphs (e) and (f)
may elect to receive an income tax holiday as provided in this section. The election under
this section is available for taxable years beginning:
new text end

new text begin (1) after December 31, 2021, and before January 1, 2023; and
new text end

new text begin (2) after December 31, 2022, and before January 1, 2024.
new text end

new text begin (b) A married taxpayer filing a joint return is eligible for the election under paragraph
(a) if one spouse or both spouses are peace officers.
new text end

new text begin (c) Notwithstanding any law to the contrary, for a taxable year in which an individual
taxpayer elected to receive an income tax holiday, the taxpayer's liability for the taxes
imposed under Minnesota Statutes, sections 290.03 and 290.091, is $0. The commissioner
of revenue must refund to an individual any estimated payments of income tax for a taxable
year covered by this section and any taxes withheld under Minnesota Statutes, section
290.92. The amount necessary to pay the refunds required under this section is appropriated
from the general fund to the commissioner of revenue.
new text end

new text begin (d) This section does not apply to an individual whose liability for tax is negative for
the taxable years in paragraph (a).
new text end

new text begin (e) To qualify for an income tax holiday under paragraph (a), an individual must be
employed as a peace officer for a 12-month period beginning in the taxable year as follows:
new text end

new text begin (1) for an individual who was first hired as a peace officer prior to the taxable year, the
12-month period is the taxable year; or
new text end

new text begin (2) for an individual who was first hired as a peace officer during the taxable year, the
12-month is the period beginning on the day the individual was first hired as a peace officer.
new text end

new text begin A taxpayer may file a return for the taxable year and elect to receive an income tax holiday
under paragraph (a) prior to completing the employment requirement in this paragraph, but
must certify that the taxpayer completed the employment requirement in accordance with
paragraph (f).
new text end

new text begin (f) No more than four months after the 12-month period described in paragraph (e), the
individual must certify to the commissioner of revenue that they fulfilled the employment
requirement under paragraph (e). The commissioner of revenue must revoke the holiday
under this section from any taxpayer who fails to complete the employment requirement or
fails to make a timely certification in accordance with this paragraph.
new text end

new text begin (g) For the purposes of this section, "peace officer" has the meaning given in Minnesota
Statutes, section 626.84, subdivision 1, paragraph (c), and the definitions in Minnesota
Statutes, section 290.01, apply to this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2021, and before January 1, 2024.
new text end