SF 1942

Introduction - 94th Legislature (2025 - 2026)

Posted on 02/28/2025 10:06 a.m.

A bill for an act
relating to taxation; estate; conforming to the federal estate tax exclusion amount;
amending Minnesota Statutes 2024, sections 289A.10, subdivision 1; 291.016,
subdivision 3.

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

Section 1.

Minnesota Statutes 2024, section 289A.10, subdivision 1, is amended to read:

Subdivision 1.

Return required.

In the case of a decedent who has an interest in property
with a situs in Minnesota, the personal representative must submit a Minnesota estate tax
return to the commissioner, on a form prescribed by the commissioner, if deleted text begin :
deleted text end

deleted text begin (1) deleted text end a federal estate tax return is required to be filed deleted text begin ; or deleted text end new text begin .
new text end

deleted text begin (2) the sum of the federal gross estate and federal adjusted taxable gifts, as defined in
section 2001(b) of the Internal Revenue Code, made within three years of the date of the
decedent's death exceeds $1,200,000 for estates of decedents dying in 2014; $1,400,000 for
estates of decedents dying in 2015; $1,600,000 for estates of decedents dying in 2016;
$2,100,000 for estates of decedents dying in 2017; $2,400,000 for estates of decedents dying
in 2018; $2,700,000 for estates of decedents dying in 2019; and $3,000,000 for estates of
decedents dying in 2020 and thereafter.
deleted text end

The return must contain a computation of the Minnesota estate tax due. The return must
be signed by the personal representative.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for estates of decedents dying after
December 31, 2024.
new text end

Sec. 2.

Minnesota Statutes 2024, section 291.016, subdivision 3, is amended to read:

Subd. 3.

Subtraction.

(a) deleted text begin For estates of decedents dying after December 31, 2016, deleted text end A
subtraction is allowed in computing the Minnesota taxable estate, equal to the deleted text begin sum of: deleted text end new text begin
decedent's applicable federal exclusion amount under section 2010(c)(3) of the Internal
Revenue Code.
new text end

deleted text begin (1) the exclusion amount for the year of death under paragraph (b); and
deleted text end

deleted text begin (2) the lesser of:
deleted text end

deleted text begin (i) the value of qualified small business property under section 291.03, subdivision 9,
and the value of qualified farm property under section 291.03, subdivision 10; or
deleted text end

deleted text begin (ii) $5,000,000 minus the exclusion amount for the year of death under paragraph (b).
deleted text end

deleted text begin (b) The following exclusion amounts apply for the year of death:
deleted text end

deleted text begin (1) $2,100,000 for decedents dying in 2017;
deleted text end

deleted text begin (2) $2,400,000 for decedents dying in 2018;
deleted text end

deleted text begin (3) $2,700,000 for decedents dying in 2019; and
deleted text end

deleted text begin (4) $3,000,000 for decedents dying in 2020 and thereafter.
deleted text end

deleted text begin (c) deleted text end new text begin (b) new text end The subtraction under this subdivision must not reduce the Minnesota taxable
estate to less than zero.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for estates of decedents dying after
December 31, 2024.
new text end