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SF 953

Estate tax ten-year phaseout provision

2025-2026 Regular Session Introduced by Steve Drazkowski and 1 co-sponsor

SF 953 would phase out Minnesota's estate tax over 10 years, easing or eliminating taxes on estates; affects taxpayers, heirs and planners, under Dept. of Revenue oversight.

Referred to Taxes
#revenuedepartment #taxation-estate
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Bill Summary · SF 953

SF 953 — Estate tax ten-year phaseout provision

Overview

  • Bill number: SF 953
  • Title: Estate tax ten-year phaseout provision
  • Subject: Revenue department, Taxation-Estate
  • Current status: Referred to Taxes
  • Introduced: February 3, 2025
  • Companion bill: HF 170

SF 953 proposes a ten-year phaseout of Minnesota’s estate tax. The bill’s title and summary indicate an orderly, decade-long reduction or elimination of the estate tax, with administration and enforcement questions to be addressed in the bill text. The companion House bill is HF 170.

Purpose and intent

  • The primary aim is to implement a gradual phaseout of the estate tax over a ten-year period. This would modify how Minnesota taxes estates and how the tax interacts with estate planning and wealth transfer within the state.
  • As introduced, the specifics (e.g., schedule, exemption levels, or transitional rules) are not provided in the available information. The exact mechanics and timelines would be defined in the full bill language.

Key provisions (as indicated by title)

  • Ten-year phaseout mechanism: A structured, decade-long reduction towards eliminating the estate tax in Minnesota.
  • Administration: Would involve the Minnesota Department of Revenue (referred to as part of the Taxation-Estate area) for implementation, enforcement, and guidance.
  • Effective dates and rules: Detailed provisions, including start dates, year-by-year phase-in/phase-out steps, exemptions, and any transitional rules, would be contained in the bill text.

Note: The precise provisions, schedules, and numerical thresholds are not included in the information provided. The above reflects the bill’s stated objective.

Potential impact and who would be affected

  • Estate taxpayers: Individuals with estates potentially subject to Minnesota’s estate tax, and their heirs, may experience changes in tax liability over the phaseout period.
  • Estate planning professionals: Banks, law firms, and financial planners would need to adjust guidance and planning strategies in light of a gradual reduction toward no estate tax.
  • Tax administration: The Minnesota Department of Revenue would oversee the phaseout, including rulemaking, education, and compliance mechanics.
  • State revenue: The phaseout could reduce estate tax revenue over time; the fiscal impact would depend on the phaseout schedule and behavioral responses.

Procedural and timeline notes

  • Introduced: February 3, 2025.
  • Committee reference: Referred to the Taxes committee in the Senate.
  • Next steps: Floor readings, committee hearings, potential amendments, and passage decisions. After passage, SF 953 would move to the House as HF 170 (its companion) for consideration.

Additional context

  • This summary reflects information available from the bill’s header and status. For detailed provisions, dates, exemption amounts, and the exact phaseout schedule, the full bill text and any fiscal notes would be required.

Compiled from official sources — confirm details with the bill’s official record.

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