HF 2731

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/08/2023 09:36am

A bill for an act
relating to taxation; individual income; establishing a refundable income tax rebate
credit for taxable year 2023.

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

Section 1. new text begin INCOME TAX REBATES.
new text end

new text begin Subdivision 1. new text end

new text begin Tax rebate credit. new text end

new text begin (a) An individual income taxpayer is allowed a credit
against the taxes imposed in Minnesota Statutes, sections 290.03 and 290.091. The credit
equals the greater of:
new text end

new text begin (1) $775; or
new text end

new text begin (2) 98 percent of the taxpayer's individual income tax liability under Minnesota Statutes,
chapter 290, for the taxable year.
new text end

new text begin (b) A taxpayer who was claimed as a dependent on another return is not eligible for a
credit under this section.
new text end

new text begin Subd. 2. new text end

new text begin Part-year residents. new text end

new text begin For an individual who was a resident of Minnesota for
less than the entire taxable year, the credit equals the amount determined under subdivision
2 for their filing status, multiplied by the percentage determined pursuant to Minnesota
Statutes, section 290.06, subdivision 2c, paragraph (e).
new text end

new text begin Subd. 3. new text end

new text begin Credit refundable; appropriation. new text end

new text begin (a) If the amount of credit which a claimant
is eligible to receive under this section exceeds the claimant's liability for tax, the
commissioner shall refund the excess to the claimant.
new text end

new text begin (b) An amount sufficient to pay the refunds required by this section is appropriated to
the commissioner from the general fund.
new text end

new text begin Subd. 4. new text end

new text begin Distribution of credit payments; filing process for taxpayers without tax
liability. new text end

new text begin (a) To the extent feasible, the commissioner of revenue must automatically adjust
the return of any taxpayer who filed a return for a taxable year in which the credit under
this section applies. If a taxpayer is eligible for a refund as a result of the credit under this
section, to the extent feasible, the commissioner must distribute the refund via direct deposit
to the taxpayer's bank account, check, or any other mechanism the commissioner deems
appropriate.
new text end

new text begin (b) The commissioner of revenue must establish a simplified filing process through
which a taxpayer who did not file a return due to a lack of individual income tax liability
may file a return for the taxable years in which the credit is available. The filing process
and forms may be in the form or manner determined by the commissioner, but must be
designed to reduce the complexity of the filing process and the time needed to file for
individuals without an income tax liability for the taxable year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective retroactively for taxable years beginning
after December 31, 2021, and before January 1, 2023.
new text end