HF 4619

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/07/2024 02:44pm

A bill for an act
relating to taxation; individual income; establishing a budget surplus credit;
appropriating money; proposing coding for new law in Minnesota Statutes, chapter
290.

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

Section 1.

new text begin [290.0696] BUDGET SURPLUS CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this subdivision, the following terms
have the meanings given.
new text end

new text begin (b) "Budget close report" means the report required under section 16A.103, subdivision
1i.
new text end

new text begin (c) "Qualifying tax year" means the even-numbered taxable year immediately preceding
the calendar year in which the budget close report is issued for a biennium that includes the
even-numbered taxable year.
new text end

new text begin (d) "Qualifying taxpayer" means an individual or married couple who, for a qualifying
tax year, both filed a Minnesota individual income tax return within six months of the due
date for filing a return in an odd-numbered year and reported a tax liability. Qualifying
taxpayer does not include a dependent, as defined in sections 151 and 152 of the Internal
Revenue Code, for the qualifying tax year.
new text end

new text begin Subd. 2. new text end

new text begin Credit allowed. new text end

new text begin (a) A qualifying taxpayer is allowed a budget surplus credit
retroactively under this subdivision for a qualifying tax year. The credit may not exceed the
taxpayer's liability for tax in the qualifying tax year, as computed under this chapter, for the
taxable year. The credit is equal to the amount of a qualifying taxpayer's tax liability, if any,
in the qualifying tax year, multiplied by the credit percentage calculated under this
subdivision. By January 31 of each odd-numbered year, the commissioner of revenue must
determine the amount of each qualifying taxpayer's budget surplus credit and pay a refund,
if any, to each qualifying taxpayer as required by this subdivision.
new text end

new text begin (b) The credit percentage for each qualifying taxpayer is the amount of the unrestricted
balance at the close of the biennium as determined by the commissioner of management
and budget in the most recent budget close report, less any amount the commissioner of
management and budget estimates will be necessary to make the allocations in section
16A.152, subdivision 2, divided by the aggregate tax liability of all qualifying taxpayers in
a qualifying tax year.
new text end

new text begin Subd. 3. new text end

new text begin Part-year residents. new text end

new text begin For a qualifying taxpayer who was a resident of Minnesota
for less than the entire taxable year for which the return was filed, the credit equals the credit
amount determined under subdivision 2, multiplied by the percentage determined in section
290.06, subdivision 2c, paragraph (e), as calculated on the qualifying taxpayer's original
income tax return for a qualifying tax year.
new text end

new text begin Subd. 4. new text end

new text begin Claim for refund not required. new text end

new text begin A refund due to the application of the credit
allowed under this section must be paid by the commissioner of revenue based on information
available in the commissioner's records, except that, if the records are not sufficient to allow
the commissioner to make a payment, the commissioner may require an individual to file
an amended return to claim the refund. Except as otherwise provided, the commissioner
must not require a qualifying taxpayer to file a claim to receive the refund. The commissioner
must update all forms and instructions for the qualifying tax year to reflect the availability
of the credit. The commissioner must adjust the tax liability of a qualifying taxpayer receiving
a surplus credit for the qualifying tax year. Refunds under this section are refunds for
purposes of revenue recapture under section 270A.03, subdivision 7.
new text end

new text begin Subd. 5. new text end

new text begin Refunds; authority of commissioner. new text end

new text begin Notwithstanding sections 9.031 and
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 refunds required by
this subdivision. The commissioner 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 that may be required under this subdivision
and receive and disburse state funds to make the direct payments by check, warrant, electronic
funds transfer, or debit card.
new text end

new text begin Subd. 6. new text end

new text begin Refunds; appropriation. new text end

new text begin By December 31 of each odd-numbered year, the
amount necessary to pay the refunds provided in this subdivision is appropriated from the
general fund to the commissioner of revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment, for
refunds due by December 31, 2025.
new text end