Definition of income modified for purposes of the property tax refund.

2025-2026 Regular Session Introduced by Dan Wolgamott

Redefines income for Minnesota property tax refunds, altering who qualifies and how much they get, prompting DOR updates to guidance, forms, and systems.

Introduction and first reading, referred to Taxes

#taxation-property

HF 1643 — Definition of income modified for purposes of the property tax refund

Overview

HF 1643 proposes changes to how the term “income” is defined for calculating Minnesota’s property tax refund. The bill aims to modify the statutory definition used to determine eligibility and/or the amount of the refund. The exact definitional changes will be specified in the bill language itself.

What the bill would do (high level)

Amend Minnesota statutes to redefine “income” for the property tax refund calculation.

The change could impact:

Who qualifies for the refund (eligibility)
The amount of the refund a claimant may receive

The specific components of income affected (e.g., wages, self-employment income, Social Security, investment income, etc.) would be set forth in the enacted text.

Who would be affected

House of Representatives taxpayers who are eligible for the property tax refund

Minnesota Department of Revenue, which administers the property tax refund program

Households and filers currently near eligibility thresholds or with income compositions affected by the new definition

Procedural status and timeline

Introduced: February 27, 2025

Status: Introduction and first reading, referred to the Taxes committee

Companion: SF 2056 (Senate counterpart)

Potential impacts and considerations

Eligibility and benefit levels: Depending on the new definition, some taxpayers may gain access to the refund or receive different amounts, while others may no longer qualify.

Administrative implementation: DOR would need to adjust guidance, forms, and computer systems to align with the new income definition.

Budgetary effects: Changes to eligibility or refund amounts could affect state outlays for the program and potentially overall tax revenue estimates.

Equity and simplicity: The bill may aim to simplify or recalibrate the income measure to better reflect taxpayers’ financial situations or to address concerns about existing thresholds.

Bill