WeVote
Log In

Bill

Bill

SF 1239

Unlimited Social Security income tax subtraction authorization

2025-2026 Regular Session Introduced by Warren Limmer

Minnesota bill would eliminate all state income taxation on Social Security benefits, reducing senior tax liability but creating uncertain state revenue loss without identified offsets.

Referred to Taxes
#taxation #taxation-income
0
WeVote Research Nonpartisan
Bill Summary · SF 1239

Legislative bill overview

SF 1239 would authorize Minnesota to allow an unlimited income tax subtraction for Social Security benefits received by residents. Currently, Minnesota allows a partial subtraction of Social Security income from state taxable income, but this bill would expand it to exclude all Social Security benefits from state taxation regardless of income level.

Why is this important

This change would primarily benefit seniors and disabled individuals receiving Social Security, potentially reducing their state tax burden. The fiscal impact depends on how many Minnesotans currently pay state tax on Social Security benefits and what revenue the state would forgo, which could affect funding for state services or require offsetting tax changes elsewhere.

Potential points of contention

  • Revenue impact: Eliminating this tax source reduces state general revenue without identifying offset funding, raising questions about budget sustainability and service delivery
  • Equity concerns: The benefit disproportionately favors higher-income retirees with substantial non-Social Security income, while lower-income seniors may see minimal tax savings
  • Income targeting: An "unlimited" subtraction doesn't phase out at higher incomes, meaning wealthy retirees receive the same benefit as low-income seniors, raising progressivity questions

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

Sign in to ask a question.