Minnesota 2025-2026 Regular Session

Minnesota Senate Bill SF4

Introduced
1/16/25  

Caption

Subtraction expansion for military retirement pay

Note

Overall, SF4 represents a legislative effort to improve the financial situation of military retirees in Minnesota, although discussions and debates are expected as various stakeholders weigh the benefits against the potential costs.

Impact

If enacted, SF4 will have a direct impact on how military retirement income is taxed in Minnesota, potentially easing the tax burden on veterans and military retirees. This change is aimed at acknowledging the unique sacrifices of military service members and providing them with financial relief in their retirement years. The amendment suggests that qualifying military retirees could benefit from a more favorable tax treatment, promoting more equitable taxation for this demographic.

Summary

SF4 is a bill that proposes to expand the subtraction for military retirement pay in Minnesota. The bill amends Minnesota Statutes 2024, section 290.0132, subdivision 21, to allow for a broader subtraction from federal adjusted gross income for compensation received from pensions or retirement pay related to military service. It outlines specific formulas for calculating the allowable subtraction based on military service ratios associated with federal employee and civil service retirement systems.

Contention

There are various points of contention surrounding SF4. Supporters argue that expanding the tax subtraction is a necessary step to honor and provide for those who have served in the military, enabling them to keep more of their retirement income. Critics may raise concerns about the fiscal implications of reducing tax revenue due to increased subtractions, questioning whether such tax breaks could adversely affect funding for other essential state programs.

Companion Bills

MN HF347

Similar To Individual income tax subtraction expanded for military retirement pay.

Previously Filed As

MN HF347

Individual income tax subtraction expanded for military retirement pay.

MN SF1590

Income tax subtraction of back pay permission for military members discharged due to the military's COVID-29 vaccination mandate

MN HF860

Income tax subtraction of back pay allowed for military members discharged due to the military's COVID-19 vaccination mandate.

MN SF211

Foreign service pension taxable income subtraction

MN HF1632

Foreign service pension income subtraction provided.

MN HF316

Limited individual income tax subtraction permitted for income received from a retirement savings plan.

MN SB1371

Income tax; subtraction; retirement distribution

MN HB60

Income Tax - Subtraction Modification for Military Retirement Income (Keep Our Heroes Home Act)

MN SB99

Income Tax - Subtraction Modification for Military Retirement Income (Keep Our Heroes Home Act)

MN SF2012

Certain retirement plans subtraction of income provision

Similar Bills

No similar bills found.