SF 1499

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/21/2024 11:31am

A bill for an act
relating to taxation; individual income; providing a direct payment to individuals;
appropriating money.

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

Section 1. new text begin CITATION.
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new text begin This act may be cited as the "Governor Tim Walz Rebate Check Act of 2023."
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Sec. 2. new text begin LEGISLATIVE FINDINGS AND PURPOSE.
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new text begin The legislature finds the following:
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new text begin Given the size of the state budget surplus after the November 2022 forecast, the people
of Minnesota have been significantly overtaxed. The people of Minnesota deserve their
money back. The purpose of this act is to return money to the hardworking taxpayers of
Minnesota. This action would be especially welcome as Minnesotans face the highest rates
of inflation in decades. In June 2022, Governor Tim Walz proposed giving half of the
projected surplus back to Minnesotans in the form of checks for each tax filer. This legislation
would return half of the state's budget surplus to the people of Minnesota.
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Sec. 3. new text begin DIRECT PAYMENT; APPROPRIATION.
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new text begin (a) The following individuals are eligible for a direct payment:
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new text begin (1) an individual who was a resident of Minnesota, as defined in Minnesota Statutes,
section 290.01, subdivision 7, for any part of 2021, and filed a 2021 Minnesota individual
income tax return by October 15, 2022; and
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new text begin (2) an individual who was eligible for and who filed a claim for refund by December
31, 2022, under Minnesota Statutes, chapter 290A.04, subdivision 2, for property taxes
payable in 2022 or subdivision 3, for rent constituting property taxes paid in 2021.
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new text begin (b) The direct payment is equal to:
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new text begin (1) $4,400 for a married couple who filed a joint return; and
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new text begin (2) $2,200 for all other filers.
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new text begin (c) For an individual who was a resident of Minnesota for less than the entire year, the
direct payment equals the direct payment under paragraph (b) for the individual's filing
status multiplied by the percentage determined pursuant to Minnesota Statutes, section
290.06, subdivision 2c, paragraph (e), as calculated on the individual's original 2021
individual income tax return.
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new text begin (d) A direct payment under this section shall be paid by the commissioner of revenue
based on information available in the commissioner's records. A person eligible for a direct
payment does not have to file a claim to receive the payment.
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new text begin (e) The commissioner of revenue shall pay individuals who filed a joint income tax
return or joint property tax refund return for 2021 a joint direct payment.
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new text begin (f) The direct payment is a "Minnesota tax law" for purpose of Minnesota Statutes,
section 270B.01, subdivision 8.
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new text begin (g) The commissioner of revenue must not apply, and must not certify to another agency
to apply, a payment under this section to any unpaid tax or nontax debt owed by an individual
who is paid a direct payment.
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new text begin (h) A payment under this section is not considered income of a recipient in determining
the recipient's Minnesota individual income tax, any Minnesota individual income tax
credits, the Minnesota property tax refund, or the Minnesota senior citizen property tax
deferral. A direct payment must not be counted as income or as an asset, personal property,
or resource when determining eligibility for any program administered by the Department
of Human Services. A direct payment is not assistance based on need for purposes of
Minnesota Statutes, section 550.37, subdivision 14.
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new text begin (i) If an individual eligible to receive a direct payment dies prior to the issuance of the
direct payment the right to the payment lapses.
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new text begin (j) If the commissioner of revenue cannot locate an individual entitled to a direct payment
within two years of the date that the original check or warrant was issued, or if an individual
to whom a direct payment was made has not cashed the check or warrant within two years
of the date that the original check or warrant was issued, the right to the payment lapses. If
an individual to whom a direct payment was made by debit card has not withdrawn from
the card the total amount of the direct payment within two years of the date of issuance of
the original debit card, the right to any remaining balance lapses to the state general fund.
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new text begin (k) If a direct payment check or warrant is cashed by someone other than the payee or
payees of the check or warrant, and the commissioner of revenue determines that the check
has been forged or improperly endorsed, the commissioner may recover the amount of the
check or warrant from the endorsee or forger. The recovery may be made using the same
procedures used in assessing additional tax under Minnesota Statutes, section 270C.33. The
assessment must be made within two years after the check or warrant is cashed. If a direct
payment was made through a debit card and the commissioner determines that the card was
activated and accessed by an unauthorized person, the commissioner may recover from the
unauthorized person the amount of any unauthorized withdrawals. The recovery may be
made using the same procedures used in assessing additional tax under Minnesota Statutes,
section 270C.33. The assessment must be made within two years after the last unauthorized
withdrawal.
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new text begin (l) Notwithstanding Minnesota Statutes, sections 9.031, 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 direct payment required by this section. 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 required under this section and receive and disburse state funds to
make the direct payments by check, warrant, electronic funds transfer, or debit card.
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new text begin (m) The amount necessary to make the direct payments provided in this section is
appropriated from the general fund to the commissioner of revenue in fiscal year 2023 and
is available until June 30, 2024.
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new text begin (n) $7,752,000 in fiscal year 2023 and $215,000 in fiscal year 2024 are appropriated
from the general fund to the commissioner of revenue to administer this section. Any
unencumbered balance remaining on June 30, 2023, does not cancel but is available for
expenditure by the commissioner of revenue until June 30, 2024. These are onetime
appropriations that are not added to the agency's budget base.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
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