Bill
SF 2867
Overview: SF 2867 - Fifth tier of the individual income tax establishment at a rate sufficient to offset lost federal Medicaid fundsPurpose and Intent: The bill aims to establish a
Overview: SF 2867 - Fifth tier of the individual income tax establishment at a rate sufficient to offset lost federal Medicaid funds
Purpose and Intent: The bill aims to establish a new, fifth tier of the individual income tax in Minnesota, with a rate set at a level sufficient to offset any potential loss of federal Medicaid funding for the state.
Key Provisions:
- Creates a new, fifth tier of the individual income tax, with a rate determined by the Minnesota Department of Revenue to be sufficient to offset any reduction in federal Medicaid funding for the state
- Requires the Department of Revenue to annually review and adjust the fifth-tier tax rate as needed to maintain revenue neutrality with respect to federal Medicaid funding changes
- Directs the revenue generated from the fifth-tier tax to be deposited into a dedicated fund to be used for Medicaid and other healthcare-related expenses
Affected Parties and Impacts: The bill would primarily impact high-income individuals in Minnesota, who would be subject to the new, higher tax rate in the fifth tier. However, the intent is to ensure the state maintains adequate funding for Medicaid and other critical healthcare programs, which would benefit low-income and vulnerable populations.
Procedural and Timeline Considerations: The bill has been referred to the Taxes committee for further review and consideration. If passed, the new fifth-tier income tax would be implemented in the next tax year, with the rate adjusted annually as needed to offset any changes in federal Medicaid funding.
Compiled from official sources — confirm details with the bill’s official record.
Sign in to ask a question.
