SF 3047

as introduced - 93rd Legislature (2023 - 2024) Posted on 03/23/2023 08:40am

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 LEGISLATIVE FINDINGS AND PURPOSE.
new text end

new text begin This bill creates a dedicated long-term care fund that is funded by closing a large tax
loophole. Currently, the highest income people do not pay any Social Security tax on any
of their highest income. Only the highest income people receive this special treatment.
Closing this loophole, treating the highest income people the same as everyone else, and
dedicating the funds to long-term care provides the funds necessary to help our most
vulnerable citizens.
new text end

Sec. 2. 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.
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, 2025, and before
January 1, 2046, a tax is levied on income not taxed for Social Security purposes, as defined
by law, 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. 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.
new text end

Sec. 3. 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 2024 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 large tax loophole.
Currently, the highest income people do not pay any Social Security tax on any of their
highest income. Only the highest income people receive this special treatment. Closing this
loophole, and treating the highest income people the same as everyone else, will provide
the funds necessary 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 2, 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 2025 general session of the Minnesota Legislature.
new text end