HF 997

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/11/2021 02:39pm

A bill for an act
proposing an amendment to the Minnesota Constitution, article XI, by adding a
section; creating a dedicated fund for long-term care services; closing a tax loophole
by levying a tax on individuals with income not taxed for Social Security purposes
to fund long-term care services; dedicating revenues; providing for the
commissioner of revenue and the commissioner of human services to propose
implementing legislation.

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

ARTICLE 1

CONSTITUTIONAL AMENDMENT

Section 1. new text begin CONSTITUTIONAL AMENDMENT PROPOSED.
new text end

new text begin An amendment to the Minnesota Constitution is proposed to the people. If the amendment
is adopted, a section shall be added to article XI, to read:
new text end

new text begin Sec. 16. new text end

new text begin A dedicated long-term care fund for the benefit of Minnesotans is created. This
dedicated long-term care fund is funded by closing a large tax loophole. Prior to the adoption
of this amendment, the highest income people did not pay any Social Security tax on any
of their highest income. Only the highest income people received this special treatment.
Closing this loophole, and treating the highest income people the same as everyone else,
provides the funds necessary to help our most vulnerable citizens who need long-term care.
Receipts from the tax under this section, plus penalties and interest, and less any refunds,
are dedicated to that fund. For taxable years beginning after December 31, 2023, and before
January 1, 2044, a tax is levied on high-income individuals with income not taxed for Social
Security purposes at the rate that the federal government taxes income for Social Security
purposes. If the federal government implements a tiered system for taxing income for Social
Security purposes, the tax under this section is levied at the lowest tiered rate. Income not
taxed for Social Security purposes is any income from wages or self-employment that is in
excess of the Social Security contribution and benefit base for the taxable year. The money
dedicated under this section shall be appropriated by law to fund the range of long-term
care services provided to Minnesotans. Funds appropriated by law must supplement
traditional sources of funding for long-term care services and may not be used as a substitute.
Funds appropriated by law must reflect the demands and needs of the populations receiving
long-term care services. Funds must be appropriated for services in all regions of the state
and must be used in part to equalize rates paid for long-term care services in different regions
of the state.
new text end

Sec. 2. new text begin SUBMISSION TO VOTERS.
new text end

new text begin (a) The title required under Minnesota Statutes, section 204D.15, subdivision 1, for the
question submitted to the people under paragraph (b) shall be "Dedication to Our Most
Vulnerable Citizens."
new text end

new text begin (b) The proposed amendment must be submitted to the people at the 2022 general election.
The question submitted must be:
new text end

new text begin "Shall the Minnesota Constitution be amended to dedicate funding to long-term care for
seniors and people with disabilities? This care will be funded by closing a tax loophole for
a small group of wealthy individuals. For taxable year 2021, individual income above
$142,800 was exempt from the tax which supports Social Security. Only the top 6% of
income earners receive this special treatment. Everyone else is required to pay this tax on
all of their earned income. Closing the loophole, and treating the top 6% the same as everyone
else, will fund the care needed to help our most vulnerable citizens.
new text end

	new text begin Yes . new text end
	new text begin No . new text end	new text begin " new text end

ARTICLE 2

IMPLEMENTING LEGISLATION

Section 1. new text begin AGENCY PROPOSAL FOR IMPLEMENTING LEGISLATION.
new text end

new text begin If the amendment in article 1, section 1, to the Minnesota Constitution, article XI, is
adopted, the commissioner of revenue and the commissioner of human services shall propose
legislation to implement the long-term care tax and to appropriate the proceeds of the tax.
The legislation must be introduced at the 2023 general session of the Minnesota Legislature.
new text end