Definition of income modified for purposes of the property tax refund.
HF453 amends Minnesota’s property tax refund law by changing how “income” is calculated for refund eligibility and refund amounts. The bill updates Minnesota Statutes section 290A.03, subdivision 3, to revise the list of items included in income and the list of items excluded from income. In particular, it clarifies treatment of retirement-related amounts, including traditional and Roth-style retirement accounts, and adjusts how certain contributions and distributions are counted for property tax refund purposes.
The bill also preserves and restates many existing income components used in the property tax refund formula, such as federal adjusted gross income, nontaxable income, public assistance, workers’ compensation, disability income, Social Security-related benefits, veterans benefits, and certain deductions and exclusions. It retains dependent and age/disability subtraction amounts, and it defines terms such as “exemption amount,” “retirement base amount,” and “traditional or Roth style retirement account or plan.” The effective date makes the change applicable to claims based on property taxes payable in 2025 and later.
HF453 would affect the calculation of Minnesota property tax refunds by broadening and clarifying the statutory definition of income used to determine eligibility and refund amounts. Because property tax refunds are income-sensitive, changes to what counts as income can alter the size of refunds for homeowners, especially older adults, retirees, and claimants with retirement account distributions or contributions. The bill amends Minnesota Statutes section 290A.03, subdivision 3, and applies prospectively to claims based on property taxes payable in 2025 and following years.
Based on the bill text and the absence of committee testimony or recorded votes, the available context suggests a technical, policy-focused measure rather than a highly contentious one. The caption and drafting indicate the bill is intended to refine the property tax refund income definition, which typically draws support when it is seen as clarifying or modernizing tax administration. No opposition, amendments, or divided votes are provided in the available materials.
No specific points of contention are documented in the provided committee or voting history. Potential areas of debate, based on the text, could include how retirement income is treated, whether the changes expand or narrow refund eligibility, and the fiscal effect on state and local property tax refund payments. However, the record supplied does not identify any legislators, agencies, or stakeholder groups taking a formal position for or against the bill.