S.F. No. 4521 Summary

• Modifies the definition of "income" for property tax refund purposes to exclude qualified retirement income, effective for refunds based on property taxes payable in 2021 and rent paid in 2020.

• Defines "public pension income" as benefits received by basic members of Minnesota public pension plans (chapters 3A, 352B, 353, 354, 354A) or federal retirement systems, provided the recipient is not also receiving Social Security benefits.

• Defines "Social Security benefits" using Internal Revenue Code section 86(d)(1) standards, regardless of whether the benefits are subject to federal income tax.

• Establishes "qualified retirement income" as the lesser of: (1) combined public pension income and Social Security benefits, or (2) $2,000 for married filers or $1,000 for single/head of household filers.

• Recognizes public retirement benefits from other states if their tax laws provide similar or reciprocal deductions or exemptions for Minnesota retirement benefits.