Bill Text: MN SF1494 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Property tax refunds scholarship income exclusion
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2012-01-24 - Referred to Taxes [SF1494 Detail]
Download: Minnesota-2011-SF1494-Introduced.html
1.2relating to taxation; property tax refund; modifying the definition of income to
1.3exclude certain scholarship income; amending Minnesota Statutes 2010, section
1.4290A.03, subdivision 3.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 290A.03, subdivision 3, is amended to
1.7read:
1.8 Subd. 3. Income. (1) "Income" means the sum of the following:
1.9(a) federal adjusted gross income as defined in the Internal Revenue Code; and
1.10(b) the sum of the following amounts to the extent not included in clause (a):
1.11(i) all nontaxable income;
1.12(ii) the amount of a passive activity loss that is not disallowed as a result of section
1.13469, paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity
1.14loss carryover allowed under section 469(b) of the Internal Revenue Code;
1.15(iii) an amount equal to the total of any discharge of qualified farm indebtedness
1.16of a solvent individual excluded from gross income under section 108(g) of the Internal
1.17Revenue Code;
1.18(iv) cash public assistance and relief;
1.19(v) any pension or annuity (including railroad retirement benefits, all payments
1.20received under the federal Social Security Act, Supplemental Security Income, and
1.21veterans benefits), which was not exclusively funded by the claimant or spouse, or which
1.22was funded exclusively by the claimant or spouse and which funding payments were
1.23excluded from federal adjusted gross income in the years when the payments were made;
2.1(vi) interest received from the federal or a state government or any instrumentality
2.2or political subdivision thereof;
2.3(vii) workers' compensation;
2.4(viii) nontaxable strike benefits;
2.5(ix) the gross amounts of payments received in the nature of disability income or
2.6sick pay as a result of accident, sickness, or other disability, whether funded through
2.7insurance or otherwise;
2.8(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
2.91986, as amended through December 31, 1995;
2.10(xi) contributions made by the claimant to an individual retirement account,
2.11including a qualified voluntary employee contribution; simplified employee pension plan;
2.12self-employed retirement plan; cash or deferred arrangement plan under section 401(k)
2.13of the Internal Revenue Code; or deferred compensation plan under section 457 of the
2.14Internal Revenue Code;
2.15(xii)nontaxable scholarship or fellowship grants;
2.16(xiii) the amount of deduction allowed under section 199 of the Internal Revenue
2.17Code;
2.18(xiv) (xiii) the amount of deduction allowed under section 220 or 223 of the Internal
2.19Revenue Code;
2.20(xv) (xiv) the amount of tuition expenses required to be added to income under
2.21section290.01, subdivision 19a , clause (12);
2.22(xvi) (xv) the amount deducted for certain expenses of elementary and secondary
2.23school teachers under section 62(a)(2)(D) of the Internal Revenue Code; and
2.24(xvii) (xvi) unemployment compensation.
2.25In the case of an individual who files an income tax return on a fiscal year basis, the
2.26term "federal adjusted gross income" shall mean federal adjusted gross income reflected
2.27in the fiscal year ending in the calendar year. Federal adjusted gross income shall not be
2.28reduced by the amount of a net operating loss carryback or carryforward or a capital loss
2.29carryback or carryforward allowed for the year.
2.30(2) "Income" does not include:
2.31(a) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and
2.32102;
2.33(b) amounts of any pension or annuity which was exclusively funded by the claimant
2.34or spouse and which funding payments were not excluded from federal adjusted gross
2.35income in the years when the payments were made;
2.36(c) surplus food or other relief in kind supplied by a governmental agency;
3.1(d) relief granted under this chapter;
3.2(e) child support payments received under a temporary or final decree of dissolution
3.3or legal separation;or
3.4(f) restitution payments received by eligible individuals and excludable interest
3.5as defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act
3.6of 2001, Public Law 107-16; or
3.7(g) nontaxable scholarship or fellowship grants, or the cash value of any tuition
3.8discount provided by a postsecondary education institution.
3.9(3) The sum of the following amounts may be subtracted from income:
3.10(a) for the claimant's first dependent, the exemption amount multiplied by 1.4;
3.11(b) for the claimant's second dependent, the exemption amount multiplied by 1.3;
3.12(c) for the claimant's third dependent, the exemption amount multiplied by 1.2;
3.13(d) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
3.14(e) for the claimant's fifth dependent, the exemption amount; and
3.15(f) if the claimant or claimant's spouse was disabled or attained the age of 65
3.16on or before December 31 of the year for which the taxes were levied or rent paid, the
3.17exemption amount.
3.18For purposes of this subdivision, the "exemption amount" means the exemption
3.19amount under section 151(d) of the Internal Revenue Code for the taxable year for which
3.20the income is reported.
3.21EFFECTIVE DATE.This section is effective beginning for claims based on
3.22property taxes payable in 2013 and on rent paid in 2012.
1.3exclude certain scholarship income; amending Minnesota Statutes 2010, section
1.4290A.03, subdivision 3.
1.5BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.6 Section 1. Minnesota Statutes 2010, section 290A.03, subdivision 3, is amended to
1.7read:
1.8 Subd. 3. Income. (1) "Income" means the sum of the following:
1.9(a) federal adjusted gross income as defined in the Internal Revenue Code; and
1.10(b) the sum of the following amounts to the extent not included in clause (a):
1.11(i) all nontaxable income;
1.12(ii) the amount of a passive activity loss that is not disallowed as a result of section
1.13469, paragraph (i) or (m) of the Internal Revenue Code and the amount of passive activity
1.14loss carryover allowed under section 469(b) of the Internal Revenue Code;
1.15(iii) an amount equal to the total of any discharge of qualified farm indebtedness
1.16of a solvent individual excluded from gross income under section 108(g) of the Internal
1.17Revenue Code;
1.18(iv) cash public assistance and relief;
1.19(v) any pension or annuity (including railroad retirement benefits, all payments
1.20received under the federal Social Security Act, Supplemental Security Income, and
1.21veterans benefits), which was not exclusively funded by the claimant or spouse, or which
1.22was funded exclusively by the claimant or spouse and which funding payments were
1.23excluded from federal adjusted gross income in the years when the payments were made;
2.1(vi) interest received from the federal or a state government or any instrumentality
2.2or political subdivision thereof;
2.3(vii) workers' compensation;
2.4(viii) nontaxable strike benefits;
2.5(ix) the gross amounts of payments received in the nature of disability income or
2.6sick pay as a result of accident, sickness, or other disability, whether funded through
2.7insurance or otherwise;
2.8(x) a lump-sum distribution under section 402(e)(3) of the Internal Revenue Code of
2.91986, as amended through December 31, 1995;
2.10(xi) contributions made by the claimant to an individual retirement account,
2.11including a qualified voluntary employee contribution; simplified employee pension plan;
2.12self-employed retirement plan; cash or deferred arrangement plan under section 401(k)
2.13of the Internal Revenue Code; or deferred compensation plan under section 457 of the
2.14Internal Revenue Code;
2.15(xii)
2.16
2.17Code;
2.18
2.19Revenue Code;
2.20
2.21section
2.22
2.23school teachers under section 62(a)(2)(D) of the Internal Revenue Code; and
2.24
2.25In the case of an individual who files an income tax return on a fiscal year basis, the
2.26term "federal adjusted gross income" shall mean federal adjusted gross income reflected
2.27in the fiscal year ending in the calendar year. Federal adjusted gross income shall not be
2.28reduced by the amount of a net operating loss carryback or carryforward or a capital loss
2.29carryback or carryforward allowed for the year.
2.30(2) "Income" does not include:
2.31(a) amounts excluded pursuant to the Internal Revenue Code, sections 101(a) and
2.32102;
2.33(b) amounts of any pension or annuity which was exclusively funded by the claimant
2.34or spouse and which funding payments were not excluded from federal adjusted gross
2.35income in the years when the payments were made;
2.36(c) surplus food or other relief in kind supplied by a governmental agency;
3.1(d) relief granted under this chapter;
3.2(e) child support payments received under a temporary or final decree of dissolution
3.3or legal separation;
3.4(f) restitution payments received by eligible individuals and excludable interest
3.5as defined in section 803 of the Economic Growth and Tax Relief Reconciliation Act
3.6of 2001, Public Law 107-16; or
3.7(g) nontaxable scholarship or fellowship grants, or the cash value of any tuition
3.8discount provided by a postsecondary education institution.
3.9(3) The sum of the following amounts may be subtracted from income:
3.10(a) for the claimant's first dependent, the exemption amount multiplied by 1.4;
3.11(b) for the claimant's second dependent, the exemption amount multiplied by 1.3;
3.12(c) for the claimant's third dependent, the exemption amount multiplied by 1.2;
3.13(d) for the claimant's fourth dependent, the exemption amount multiplied by 1.1;
3.14(e) for the claimant's fifth dependent, the exemption amount; and
3.15(f) if the claimant or claimant's spouse was disabled or attained the age of 65
3.16on or before December 31 of the year for which the taxes were levied or rent paid, the
3.17exemption amount.
3.18For purposes of this subdivision, the "exemption amount" means the exemption
3.19amount under section 151(d) of the Internal Revenue Code for the taxable year for which
3.20the income is reported.
3.21EFFECTIVE DATE.This section is effective beginning for claims based on
3.22property taxes payable in 2013 and on rent paid in 2012.
