Bill Text: MN HF333 | 2013-2014 | 88th Legislature | Introduced
Bill Title: Property tax refund program income definition modified.
Spectrum: Moderate Partisan Bill (Democrat 5-1)
Status: (Introduced - Dead) 2013-02-13 - Referred by Chair to Property and Local Tax Division [HF333 Detail]
Download: Minnesota-2013-HF333-Introduced.html
1.2relating to property taxation; modifying the definition of income used in the
1.3property tax refund program;amending Minnesota Statutes 2012, section
1.4290A.03, subdivision 3.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 290A.03, subdivision 3, is amended to read:
1.7 Subd. 3. Income. (1) "Income" means the sum of the following:
1.8(a) federal adjusted gross income as defined in the Internal Revenue Code; and
1.9(b) the sum of the following amounts to the extent not included in clause (a):
1.10(i) all nontaxable income;
1.11(ii) the amount of a passive activity loss that is not disallowed as a result of section
1.12469, paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity
1.13loss carryover allowed under section 469(b) of the Internal Revenue Code;
1.14(iii) an amount equal to the total of any discharge of qualified farm indebtedness
1.15of a solvent individual excluded from gross income under section 108(g) of the Internal
1.16Revenue Code;
1.17(iv) cash public assistance and relief;
1.18(v) any pension or annuity (including railroad retirement benefits, all payments
1.19received under the federal Social Security Act, Supplemental Security Income, and
1.20veterans benefits), which was not exclusively funded by the claimant or spouse, or which
1.21was funded exclusively by the claimant or spouse and which funding payments were
1.22excluded from federal adjusted gross income in the years when the payments were made;
1.23(vi) interest received from the federal or a state government or any instrumentality
1.24or political subdivision thereof;
2.1(vii) workers' compensation;
2.2(viii) nontaxable strike benefits;
2.3(ix) the gross amounts of payments received in the nature of disability income or
2.4sick pay as a result of accident, sickness, or other disability, whether funded through
2.5insurance or otherwise;
2.6(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
2.71986, as amended through December 31, 1995;
2.8(xi)contributions made by the claimant to an individual retirement account,
2.9including a qualified voluntary employee contribution; simplified employee pension plan;
2.10self-employed retirement plan; cash or deferred arrangement plan under section 401(k)
2.11of the Internal Revenue Code; or deferred compensation plan under section 457 of the
2.12Internal Revenue Code;
2.13(xii) nontaxable scholarship or fellowship grants;
2.14(xiii) (xii) the amount of deduction allowed under section 199 of the Internal
2.15Revenue Code;
2.16(xiv) (xiii) the amount of deduction allowed under section 220 or 223 of the Internal
2.17Revenue Code;
2.18(xv) (xiv) the amount of tuition expenses required to be added to income under
2.19section290.01, subdivision 19a , clause (12);
2.20(xvi) (xv) the amount deducted for certain expenses of elementary and secondary
2.21school teachers under section 62(a)(2)(D) of the Internal Revenue Code; and
2.22(xvii) (xvi) unemployment compensation.
2.23In the case of an individual who files an income tax return on a fiscal year basis, the
2.24term "federal adjusted gross income" shall mean federal adjusted gross income reflected
2.25in the fiscal year ending in the calendar year. Federal adjusted gross income shall not be
2.26reduced by the amount of a net operating loss carryback or carryforward or a capital loss
2.27carryback or carryforward allowed for the year.
2.28(2) "Income" does not include:
2.29(a) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
2.30(b) amounts of any pension or annuity which was exclusively funded by the claimant
2.31or spouse and which funding payments were not excluded from federal adjusted gross
2.32income in the years when the payments were made;
2.33(c) surplus food or other relief in kind supplied by a governmental agency;
2.34(d) relief granted under this chapter;
2.35(e) child support payments received under a temporary or final decree of dissolution
2.36or legal separation; or
3.1(f) restitution payments received by eligible individuals and excludable interest as
3.2defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of
3.32001, Public Law 107-16.
3.4(3) The sum of the following amounts may be subtracted from income:
3.5(a) for the claimant's first dependent, the exemption amount multiplied by 1.4;
3.6(b) for the claimant's second dependent, the exemption amount multiplied by 1.3;
3.7(c) for the claimant's third dependent, the exemption amount multiplied by 1.2;
3.8(d) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
3.9(e) for the claimant's fifth dependent, the exemption amount; and
3.10(f) if the claimant or claimant's spouse was disabled or attained the age of 65
3.11on or before December 31 of the year for which the taxes were levied or rent paid, the
3.12exemption amount.
3.13For purposes of this subdivision, the "exemption amount" means the exemption
3.14amount under section 151(d) of the Internal Revenue Code for the taxable year for which
3.15the income is reported.
3.16EFFECTIVE DATE.This section is effective beginning with refunds based on
3.17property taxes payable in 2014 and rent paid in 2013.
1.3property tax refund program;amending Minnesota Statutes 2012, section
1.4290A.03, subdivision 3.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2012, section 290A.03, subdivision 3, is amended to read:
1.7 Subd. 3. Income. (1) "Income" means the sum of the following:
1.8(a) federal adjusted gross income as defined in the Internal Revenue Code; and
1.9(b) the sum of the following amounts to the extent not included in clause (a):
1.10(i) all nontaxable income;
1.11(ii) the amount of a passive activity loss that is not disallowed as a result of section
1.12469, paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity
1.13loss carryover allowed under section 469(b) of the Internal Revenue Code;
1.14(iii) an amount equal to the total of any discharge of qualified farm indebtedness
1.15of a solvent individual excluded from gross income under section 108(g) of the Internal
1.16Revenue Code;
1.17(iv) cash public assistance and relief;
1.18(v) any pension or annuity (including railroad retirement benefits, all payments
1.19received under the federal Social Security Act, Supplemental Security Income, and
1.20veterans benefits), which was not exclusively funded by the claimant or spouse, or which
1.21was funded exclusively by the claimant or spouse and which funding payments were
1.22excluded from federal adjusted gross income in the years when the payments were made;
1.23(vi) interest received from the federal or a state government or any instrumentality
1.24or political subdivision thereof;
2.1(vii) workers' compensation;
2.2(viii) nontaxable strike benefits;
2.3(ix) the gross amounts of payments received in the nature of disability income or
2.4sick pay as a result of accident, sickness, or other disability, whether funded through
2.5insurance or otherwise;
2.6(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
2.71986, as amended through December 31, 1995;
2.8(xi)
2.9
2.10
2.11
2.12
2.13
2.14
2.15Revenue Code;
2.16
2.17Revenue Code;
2.18
2.19section
2.20
2.21school teachers under section 62(a)(2)(D) of the Internal Revenue Code; and
2.22
2.23In the case of an individual who files an income tax return on a fiscal year basis, the
2.24term "federal adjusted gross income" shall mean federal adjusted gross income reflected
2.25in the fiscal year ending in the calendar year. Federal adjusted gross income shall not be
2.26reduced by the amount of a net operating loss carryback or carryforward or a capital loss
2.27carryback or carryforward allowed for the year.
2.28(2) "Income" does not include:
2.29(a) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and 102;
2.30(b) amounts of any pension or annuity which was exclusively funded by the claimant
2.31or spouse and which funding payments were not excluded from federal adjusted gross
2.32income in the years when the payments were made;
2.33(c) surplus food or other relief in kind supplied by a governmental agency;
2.34(d) relief granted under this chapter;
2.35(e) child support payments received under a temporary or final decree of dissolution
2.36or legal separation; or
3.1(f) restitution payments received by eligible individuals and excludable interest as
3.2defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act of
3.32001, Public Law 107-16.
3.4(3) The sum of the following amounts may be subtracted from income:
3.5(a) for the claimant's first dependent, the exemption amount multiplied by 1.4;
3.6(b) for the claimant's second dependent, the exemption amount multiplied by 1.3;
3.7(c) for the claimant's third dependent, the exemption amount multiplied by 1.2;
3.8(d) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
3.9(e) for the claimant's fifth dependent, the exemption amount; and
3.10(f) if the claimant or claimant's spouse was disabled or attained the age of 65
3.11on or before December 31 of the year for which the taxes were levied or rent paid, the
3.12exemption amount.
3.13For purposes of this subdivision, the "exemption amount" means the exemption
3.14amount under section 151(d) of the Internal Revenue Code for the taxable year for which
3.15the income is reported.
3.16EFFECTIVE DATE.This section is effective beginning with refunds based on
3.17property taxes payable in 2014 and rent paid in 2013.
