Plain English Breakdown
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HF4974 • 2026
Income and property tax refunds; homestead credit refund co-pays reduced, commissioner of revenue authorized to implement a tax compliance program, and money appropriated.
Income and property tax refunds; homestead credit refund co-pays reduced, commissioner of revenue authorized to implement a tax compliance program, and money appropriated.
Taxes
Passed Legislature
This bill passed both chambers and reached final enrollment, even if later executive action is not shown here.
Bill History
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2026-04-16
House
Introduction and first reading, referred to Taxes
Official Summary Text
Income and property tax refunds; homestead credit refund co-pays reduced, commissioner of revenue authorized to implement a tax compliance program, and money appropriated.
Current Bill Text
Read the full stored bill text
A bill for an act relating to taxation; income and property tax refunds; reducing homestead credit refund co-pays; authorizing the commissioner of revenue to implement a tax compliance program; appropriating money; amending Minnesota Statutes 2024, section 290A.04, subdivisions 2, 4. BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Section 1. Minnesota Statutes 2024, section 290A.04, subdivision 2, is amended to read: Subd. 2. Homeowners; homestead credit refund. A claimant whose property taxes payable are in excess of the percentage of the household income stated below shall pay an amount equal to the percent of income shown for the appropriate household income level along with the percent to be paid by the claimant of the remaining amount of property taxes payable. The state refund equals the amount of property taxes payable that remain, up to the state refund amount shown below. Household Income Percent of Income Percent Paid by Claimant Maximum State Refund $0 to deleted text begin 2,079 deleted text end new text begin 2,249 new text end 1.0 percent deleted text begin 12 deleted text end new text begin 7 new text end percent $ deleted text begin 3,310 deleted text end new text begin 3,580 new text end deleted text begin 2,080 to 4,139 deleted text end new text begin 2,250 to 4,469 new text end 1.1 percent deleted text begin 12 deleted text end new text begin 7 new text end percent $ deleted text begin 3,310 deleted text end new text begin 3,580 new text end deleted text begin 4,140 to 6,269 deleted text end new text begin 4,470 to 6,779 new text end 1.2 percent deleted text begin 12 deleted text end new text begin 7 new text end percent $ deleted text begin 3,310 deleted text end new text begin 3,580 new text end deleted text begin 6,270 to 8,369 deleted text end new text begin 6,780 to 9,049 new text end 1.3 percent deleted text begin 17 deleted text end new text begin 12 new text end percent $ deleted text begin 3,310 deleted text end new text begin 3,580 new text end deleted text begin 8,370 to 10,439 deleted text end new text begin 9,050 to 11,279 new text end 1.4 percent deleted text begin 17 deleted text end new text begin 12 new text end percent $ deleted text begin 3,310 deleted text end new text begin 3,580 new text end deleted text begin 10,440 to 14,619 deleted text end new text begin 11,280 to 15,799 new text end 1.5 percent deleted text begin 17 deleted text end new text begin 12 new text end percent $ deleted text begin 3,310 deleted text end new text begin 3,580 new text end deleted text begin 14,620 to 16,689 deleted text end new text begin 15,800 to 18,039 new text end 1.6 percent deleted text begin 17 deleted text end new text begin 12 new text end percent $ deleted text begin 3,310 deleted text end new text begin 3,580 new text end deleted text begin 16,690 to 18,799 deleted text end new text begin 18,040 to 20,319 new text end 1.7 percent deleted text begin 17 deleted text end new text begin 12 new text end percent $ deleted text begin 3,310 deleted text end new text begin 3,580 new text end deleted text begin 18,800 to 20,879 deleted text end new text begin 20,320 to 22,559 new text end 1.8 percent deleted text begin 17 deleted text end new text begin 12 new text end percent $ deleted text begin 3,310 deleted text end new text begin 3,580 new text end deleted text begin 20,880 to 22,949 deleted text end new text begin 22,560 to 24,799 new text end 1.9 percent deleted text begin 22 deleted text end new text begin 17 new text end percent $ deleted text begin 3,310 deleted text end new text begin 3,580 new text end deleted text begin 22,950 to 29,239 deleted text end new text begin 24,800 to 31,599 new text end 2.0 percent deleted text begin 22 deleted text end new text begin 17 new text end percent $ deleted text begin 3,310 deleted text end new text begin 3,580 new text end deleted text begin 29,240 to 31,319 deleted text end new text begin 31,600 to 33,849 new text end 2.0 percent deleted text begin 27 deleted text end new text begin 22 new text end percent $ deleted text begin 3,310 deleted text end new text begin 3,580 new text end deleted text begin 31,320 to 35,509 deleted text end new text begin 33,850 to 38,379 new text end 2.0 percent deleted text begin 27 deleted text end new text begin 22 new text end percent $ deleted text begin 3,310 deleted text end new text begin 3,580 new text end deleted text begin 35,510 to 50,099 deleted text end new text begin 38,380 to 54,139 new text end 2.0 percent deleted text begin 32 deleted text end new text begin 27 new text end percent $ deleted text begin 3,310 deleted text end new text begin 3,580 new text end deleted text begin 50,100 to 73,059 deleted text end new text begin 54,140 to 78,959 new text end 2.0 percent deleted text begin 32 deleted text end new text begin 27 new text end percent $ deleted text begin 2,680 deleted text end new text begin 2,900 new text end deleted text begin 73,060 to 83,499 deleted text end new text begin 78,960 to 90,239 new text end 2.0 percent deleted text begin 37 deleted text end new text begin 32 new text end percent $ deleted text begin 2,350 deleted text end new text begin 2,540 new text end deleted text begin 83,500 to 93,939 deleted text end new text begin 90,240 to 101,519 new text end 2.1 percent deleted text begin 37 deleted text end new text begin 32 new text end percent $ deleted text begin 1,940 deleted text end new text begin 2,100 new text end deleted text begin 93,940 to 104,379 deleted text end new text begin 101,520 to 112,799 new text end 2.2 percent deleted text begin 37 deleted text end new text begin 32 new text end percent $ deleted text begin 1,740 deleted text end new text begin 1,880 new text end deleted text begin 104,380 to 114,819 deleted text end new text begin 112,800 to 124,089 new text end 2.3 percent deleted text begin 37 deleted text end new text begin 32 new text end percent $ deleted text begin 1,520 deleted text end new text begin 1,640 new text end deleted text begin 114,820 to 121,089 deleted text end new text begin 124,090 to 130,859 new text end 2.4 percent deleted text begin 42 deleted text end new text begin 37 new text end percent $ deleted text begin 1,280 deleted text end new text begin 1,380 new text end deleted text begin 121,090 to 125,289 deleted text end new text begin 130,860 to 135,399 new text end 2.5 percent deleted text begin 42 deleted text end new text begin 37 new text end percent $ deleted text begin 1,070 deleted text end new text begin 1,160 new text end deleted text begin 125,290 to 130,349 deleted text end new text begin 135,400 to 140,869 new text end 2.5 percent deleted text begin 47 deleted text end new text begin 42 new text end percent $ deleted text begin 870 deleted text end new text begin 940 new text end deleted text begin 130,350 to 135,409 deleted text end new text begin 140,870 to 146,339 new text end 2.5 percent deleted text begin 47 deleted text end new text begin 42 new text end percent $ deleted text begin 650 deleted text end new text begin 700 new text end The payment made to a claimant shall be the amount of the state refund calculated under this subdivision. No payment is allowed if the claimant's household income is deleted text begin $135,410 deleted text end new text begin $146,340 new text end or more. new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with refunds based on property taxes payable in 2027. new text end Sec. 2. Minnesota Statutes 2024, section 290A.04, subdivision 4, is amended to read: Subd. 4. Inflation adjustment. The commissioner shall annually adjust the dollar amounts of the income thresholds and the maximum refunds under subdivision 2 as provided in section 270C.22 . The statutory year is deleted text begin 2023 deleted text end new text begin 2026 new text end . new text begin EFFECTIVE DATE. new text end new text begin This section is effective beginning with refunds based on property taxes payable in 2027. new text end Sec. 3. new text begin TAX COMPLIANCE; TAX ANALYTICS AND BUSINESS INTELLIGENCE TOOLS. new text end new text begin Subdivision 1. new text end new text begin Program activities. new text end new text begin The commissioner of revenue may implement a program of tax compliance, including the use of advanced tax analytics and business intelligence tools to enhance tax assessment and collection by improving the means to identify taxpayers that should be subject to audit and collection activities and by prioritizing those activities to provide a higher rate of return on the activities of Department of Revenue employees. new text end new text begin Subd. 2. new text end new text begin Priority. new text end new text begin The tax compliance program under this section must prioritize compliance and enforcement activities for corporations and complex pass-through entities under the corporate franchise and individual income taxes, individual income taxpayers reporting over $500,000 in taxable income, and businesses subject to the state's sales and use tax laws. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end Sec. 4. new text begin APPROPRIATION; TAX COMPLIANCE; TAX ANALYTICS AND BUSINESS INTELLIGENCE TOOLS; RETURN ON INVESTMENT. new text end new text begin (a) $5,000,000 in fiscal year 2026 and $15,000,000 in fiscal year 2027 are appropriated from the general fund to the commissioner of revenue for purposes of the tax compliance, tax analytics, and business intelligence tools program authorized under section 3. The amount appropriated under this section must supplement and not supplant other amounts available for the purposes described in this section. new text end new text begin (b) The appropriation in paragraph (a) is for additional activities to identify and collect tax liabilities from individuals and businesses that currently do not pay all taxes owed. This initiative is expected to result in new general fund revenues of $20,000,000 for the biennium ending June 30, 2027, and $120,000,000 for the biennium ending June 30, 2029. new text end new text begin EFFECTIVE DATE. new text end new text begin This section is effective the day following final enactment. new text end