Minnesota Legislature
SF 1583
as introduced - 88th Legislature (2013 - 2014) Posted on 04/12/2013 08:36am
Current Version - as introduced
1.7 1.8 1.9 1.10 1.11 1.12 1.13 1.14 1.15 1.16 1.17 1.18 1.19 1.20 1.21 1.22 1.23 1.24 1.25 2.1 2.2 2.3 2.4 2.5 2.6 2.7 2.8 2.9 2.10 2.11 2.12 2.13 2.14 2.15 2.16 2.17 2.18 2.19 2.20 2.21 2.22 2.23 2.24 2.25 2.26 2.27 2.28 2.29 2.30 2.31 2.32 2.33 2.34 2.35 2.36 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8 3.9 3.10 3.11 3.12 3.13 3.14 3.15 3.16 3.17 3.18 3.19 3.20 3.21 3.22 3.23 3.24 3.25 3.26 3.27 3.28 3.29 3.30
3.31 3.32
3.33 3.34 3.35 4.1 4.2 4.3 4.4 4.5 4.6 4.7 4.8 4.9 4.10 4.11 4.12 4.13 4.14 4.15 4.16 4.17 4.18 4.19 4.20 4.21 4.22 4.23 4.24 4.25 4.26 4.27 4.28 4.29 4.30 4.31 4.32 4.33 4.34 4.35 4.36 4.37 4.38 4.39 4.40 4.41 4.42 4.43 4.44 4.45 4.46 4.47 5.1 5.2 5.3 5.4 5.5 5.6 5.7 5.8 5.9 5.10 5.11 5.12 5.13 5.14 5.15 5.16 5.17 5.18 5.19 5.20 5.21
5.22 5.23
5.24 5.25 5.26 5.27 5.28 5.29 5.30 5.31 5.32 5.33 5.34 5.35 5.36 5.37 5.38 6.1 6.2 6.3 6.4 6.5 6.6 6.7 6.8 6.9
6.10 6.11
A bill for an act
relating to taxation; property; modifying definition of income for the property
tax refund; decreasing the threshold percentage for the property tax refund
for renters; increasing the maximum refund for renters; amending Minnesota
Statutes 2012, sections 290A.03, subdivision 3; 290A.04, subdivisions 2a, 4.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2012, section 290A.03, subdivision 3, is amended to read:
Subd. 3.
Income.
(1) "Income" means the sum of the following:
(a) federal adjusted gross income as defined in the Internal Revenue Code; and
(b) the sum of the following amounts to the extent not included in clause (a):
(i) all nontaxable income;
(ii) the amount of a passive activity loss that is not disallowed as a result of section
469, paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity
loss carryover allowed under section 469(b) of the Internal Revenue Code;
(iii) an amount equal to the total of any discharge of qualified farm indebtedness
of a solvent individual excluded from gross income under section 108(g) of the Internal
Revenue Code;
(iv) cash public assistance and relief;
(v) any pension or annuity (including railroad retirement benefits, all payments
received under the federal Social Security Act, Supplemental Security Income, and
veterans benefits), which was not exclusively funded by the claimant or spouse, or which
was funded exclusively by the claimant or spouse and which funding payments were
excluded from federal adjusted gross income in the years when the payments were made;
(vi) interest received from the federal or a state government or any instrumentality
or political subdivision thereof;
(vii) workers' compensation;
(viii) nontaxable strike benefits;
(ix) the gross amounts of payments received in the nature of disability income or
sick pay as a result of accident, sickness, or other disability, whether funded through
insurance or otherwise;
(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
1986, as amended through December 31, 1995;
(xi) contributions made by the claimant to an individual retirement account,
including a qualified voluntary employee contribution; simplified employee pension plan;
self-employed retirement plan; cash or deferred arrangement plan under section 401(k)
of the Internal Revenue Code; or deferred compensation plan under section 457 of the
Internal Revenue Code;
(xii) nontaxable scholarship or fellowship grants;
(xiii) the amount of deduction allowed under section 199 of the Internal Revenue
Code;
(xiv) the amount of deduction allowed under section 220 or 223 of the Internal
Revenue Code;
(xv) the amount of tuition expenses required to be added to income under section
290.01, subdivision 19a, clause (12);
(xvi) the amount deducted for certain expenses of elementary and secondary school
teachers under section 62(a)(2)(D) of the Internal Revenue Code; and
(xvii) unemployment compensation.
In the case of an individual who files an income tax return on a fiscal year basis, the
term "federal adjusted gross income" shall mean federal adjusted gross income reflected
in the fiscal year ending in the calendar year. Federal adjusted gross income shall not be
reduced by the amount of a net operating loss carryback or carryforward or a capital loss
carryback or carryforward allowed for the year.
(2) "Income" does not include:
(a) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
(b) amounts of any pension or annuity which was exclusively funded by the claimant
or spouse and which funding payments were not excluded from federal adjusted gross
income in the years when the payments were made;
(c) surplus food or other relief in kind supplied by a governmental agency;
(d) relief granted under this chapter;
(e) child support payments received under a temporary or final decree of dissolution
or legal separation; or
(f) restitution payments received by eligible individuals and excludable interest as
defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of
2001, Public Law 107-16.
(3) deleted text begin The sum of the following amounts may be subtracted from incomedeleted text end new text begin A claimant,
other than one who has rent constituting property taxes, may subtract from income the
sum of the following amountsnew text end :
(a) for the claimant's first dependent, the exemption amount multiplied by 1.4;
(b) for the claimant's second dependent, the exemption amount multiplied by 1.3;
(c) for the claimant's third dependent, the exemption amount multiplied by 1.2;
(d) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
(e) for the claimant's fifth dependent, the exemption amount; and
(f) if the claimant or claimant's spouse new text begin who occupies the homestead new text end was disabled
or attained the age of 65 on or before December 31 of the year for which the taxes were
levied or rent paid, the exemption amount.
new text begin
(4) A claimant who has rent constituting property taxes may subtract from income
the sum of the following amounts:
new text end
new text begin
(a) for the claimant's first dependent, the exemption amount multiplied by 1.5;
new text end
new text begin
(b) for the claimant's second dependent, the exemption amount multiplied by 1.4;
new text end
new text begin
(c) for the claimant's third dependent, the exemption amount multiplied by 1.3;
new text end
new text begin
(d) for the claimant's fourth dependent, the exemption amount multiplied by 1.2;
new text end
new text begin
(e) for the claimant's fifth dependent, the exemption amount multiplied by 1.1;
new text end
new text begin
(f) if the claimant was disabled or attained the age of 65 on or before December 31
of the year for which the rent constituting property taxes was paid, the exemption amount
times 1.5; and
new text end
new text begin
(g) if the claimant's spouse who occupies the homestead was disabled or attained the
age of 65 on or before December 31 of the year for which the rent constituting property
taxes were paid, the exemption amount.
new text end
For purposes of this subdivision, the "exemption amount" means the exemption
amount under section 151(d) of the Internal Revenue Code for the taxable year for which
the income is reported.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with refunds based on rent
constituting property taxes paid after December 31, 2012.
new text end
Sec. 2.
Minnesota Statutes 2012, section 290A.04, subdivision 2a, is amended to read:
Subd. 2a.
Renters.
A claimant whose rent constituting property taxes exceeds the
percentage of the household income stated below must pay an amount equal to the percent
of income shown for the appropriate household income level along with the percent to
be paid by the claimant of the remaining amount of rent constituting property taxes. The
state refund equals the amount of rent constituting property taxes that remain, up to the
maximum state refund amount shown below.
| Household Income |
Percent of Income |
Percent Paid by Claimant |
Maximum State Refund |
|
| $0 to deleted text begin 3,589 deleted text end new text begin 4,910 new text end |
1.0 percent |
5 percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,790 new text end |
|
deleted text begin
3,590 to 4,779 deleted text end new text begin 4,911 to 6,530 new text end |
1.0 percent |
deleted text begin 10 deleted text end new text begin 5new text end percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,790 new text end |
|
deleted text begin
4,780 to 5,969 deleted text end new text begin 6,531 to 8,160 new text end |
1.1 percent |
deleted text begin 10 deleted text end new text begin 5new text end percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,790 new text end |
|
deleted text begin
5,970 to 8,369 deleted text end new text begin 8,161 to 11,440 new text end |
1.2 percent |
deleted text begin 10 deleted text end new text begin 5new text end percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,790 new text end |
|
deleted text begin
8,370 to 10,759 deleted text end new text begin 11,441 to 14,710 new text end |
1.3 percent |
deleted text begin 15 deleted text end new text begin 10new text end percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,790 new text end |
|
deleted text begin
10,760 to 11,949 deleted text end new text begin 14,711 to 16,340 new text end |
1.4 percent |
deleted text begin 15 deleted text end new text begin 10new text end percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,790 new text end |
|
deleted text begin
11,950 to 13,139 deleted text end new text begin 16,341 to 17,960 new text end |
1.4 percent |
deleted text begin 20 deleted text end new text begin 15new text end percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,790 new text end |
|
deleted text begin
13,140 to 15,539 deleted text end new text begin 17,961 to 21,240 new text end |
1.5 percent |
deleted text begin 20 deleted text end new text begin 15new text end percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,790 new text end |
|
deleted text begin
15,540 to 16,729 deleted text end new text begin 21,241 to 22,870 new text end |
1.6 percent |
deleted text begin 20 deleted text end new text begin 15new text end percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,790 new text end |
|
deleted text begin
16,730 to 17,919 deleted text end new text begin 22,871 to 24,500 new text end |
1.7 percent |
deleted text begin 25 deleted text end new text begin 20new text end percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,790 new text end |
|
deleted text begin
17,920 to 20,319 deleted text end new text begin 24,501 to 27,780 new text end |
1.8 percent |
deleted text begin 25 deleted text end new text begin 20new text end percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,790 new text end |
|
deleted text begin
20,320 to 21,509 deleted text end new text begin 27,781 to 29,400 new text end |
1.9 percent |
deleted text begin 30 deleted text end new text begin 25new text end percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,790 new text end |
|
deleted text begin
21,510 to 22,699 deleted text end new text begin 29,401 to 31,030 new text end |
2.0 percent |
deleted text begin 30 deleted text end new text begin 25new text end percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,790 new text end |
|
deleted text begin
22,700 to 23,899 deleted text end new text begin 31,031 to 32,670 new text end |
2.2 percent |
deleted text begin 30 deleted text end new text begin 25new text end percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,790 new text end |
|
deleted text begin
23,900 to 25,089 deleted text end new text begin 32,671 to 34,300 new text end |
2.4 percent |
deleted text begin 30 deleted text end new text begin 25new text end percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,790 new text end |
|
deleted text begin
25,090 to 26,289 deleted text end new text begin 34,301 to 35,940 new text end |
2.6 percent |
deleted text begin 35 deleted text end new text begin 30new text end percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,790 new text end |
|
deleted text begin
26,290 to 27,489 deleted text end new text begin 35,941 to 37,580 new text end |
2.7 percent |
deleted text begin 35 deleted text end new text begin 30new text end percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,790 new text end |
|
deleted text begin
27,490 to 28,679 deleted text end new text begin 37,581 to 39,200 new text end |
2.8 percent |
deleted text begin 35 deleted text end new text begin 30new text end percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,790 new text end |
|
deleted text begin
28,680 to 29,869 deleted text end new text begin 39,201 to 40,830 new text end |
2.9 percent |
deleted text begin 40 deleted text end new text begin 35new text end percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,790 new text end |
|
deleted text begin
29,870 to 31,079 deleted text end new text begin 40,831 to 42,490 new text end |
3.0 percent |
deleted text begin 40 deleted text end new text begin 35new text end percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,790 new text end |
|
deleted text begin
31,080 to 32,269 deleted text end new text begin 42,491 to 44,110 new text end |
3.1 percent |
deleted text begin 40 deleted text end new text begin 35new text end percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,790 new text end |
|
deleted text begin
32,270 to 33,459 deleted text end new text begin 44,111 to 45,740 new text end |
3.2 percent |
deleted text begin 40 deleted text end new text begin 35new text end percent |
$ |
deleted text begin
1,190 deleted text end new text begin 1,790 new text end |
|
deleted text begin
33,460 to 34,649 deleted text end new text begin 45,741 to 47,370 new text end |
3.3 percent |
deleted text begin 45 deleted text end new text begin 40new text end percent |
$ |
deleted text begin
1,080 deleted text end new text begin 1,630 new text end |
|
deleted text begin
34,650 to 35,849 deleted text end new text begin 47,371 to 49,010 new text end |
3.4 percent |
deleted text begin 45 deleted text end new text begin 40new text end percent |
$ |
deleted text begin
960 deleted text end new text begin 1,440 new text end |
|
deleted text begin
35,850 to 37,049 deleted text end new text begin 49,011 to 50,650 new text end |
3.5 percent |
deleted text begin 45 deleted text end new text begin 40new text end percent |
$ |
deleted text begin
830 deleted text end new text begin 1,240 new text end |
|
deleted text begin
37,050 to 38,239 deleted text end new text begin 50,651 to 52,270 new text end |
3.5 percent |
deleted text begin 50 deleted text end new text begin 45new text end percent |
$ |
deleted text begin
720 deleted text end new text begin 1,080 new text end |
|
deleted text begin
38,240 to 39,439 deleted text end new text begin 52,271 to 53,910 new text end |
3.5 percent |
deleted text begin 50 deleted text end new text begin 45new text end percent |
$ |
deleted text begin
600 deleted text end new text begin 900 new text end |
|
deleted text begin
38,440 to 40,629 deleted text end new text begin 53,911 to 55,540 new text end |
3.5 percent |
deleted text begin 50 deleted text end new text begin 45new text end percent |
$ |
deleted text begin
360 deleted text end new text begin 540 new text end |
|
deleted text begin
40,630 to 41,819 deleted text end new text begin 55,541 to 57,170 new text end |
3.5 percent |
deleted text begin 50 deleted text end new text begin 45new text end percent |
$ |
deleted text begin
120 deleted text end new text begin 180 new text end |
The payment made to a claimant is the amount of the state refund calculated under
this subdivision. No payment is allowed if the claimant's household income is deleted text begin $41,820 or
deleted text end morenew text begin than $57,170new text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with refunds based on rent
constituting property taxes paid after December 31, 2012.
new text end
Sec. 3.
Minnesota Statutes 2012, section 290A.04, subdivision 4, is amended to read:
Subd. 4.
Inflation adjustment.
(a) Beginning for property tax refunds payable in
calendar year 2002, the commissioner shall annually adjust the dollar amounts of the
income thresholds and the maximum refunds under subdivisions 2 and 2a for inflation.
The commissioner shall make the inflation adjustments in accordance with section 1(f) of
the Internal Revenue Code, except that for purposes of this subdivision the percentage
increase shall be determined as provided in this subdivision.
(b) In adjusting the dollar amounts of the income thresholds and the maximum
refunds under subdivision 2 for inflation, the percentage increase shall be determined from
the year ending on June 30, 2011, to the year ending on June 30 of the year preceding that
in which the refund is payable.
(c) In adjusting the dollar amounts of the income thresholds and the maximum
refunds under subdivision 2a for inflation, the percentage increase shall be determined
from the year ending on June 30, deleted text begin 2000deleted text end new text begin 2013new text end , to the year ending on June 30 of the year
preceding that in which the refund is payable.
(d) The commissioner shall use the appropriate percentage increase to annually
adjust the income thresholds and maximum refunds under subdivisions 2 and 2a for
inflation without regard to whether or not the income tax brackets are adjusted for inflation
in that year. The commissioner shall round the thresholds and the maximum amounts,
as adjusted to the nearest $10 amount. If the amount ends in $5, the commissioner shall
round it up to the next $10 amount.
(e) The commissioner shall annually announce the adjusted refund schedule at the
same time provided under section 290.06. The determination of the commissioner under
this subdivision is not a rule under the Administrative Procedure Act.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with refunds based on
rent paid after December 31, 2013.
new text end