S.F. No. 4514 Summary

• Creates a new refundable property tax credit under Minnesota income tax (section 290.0693) effective for taxable years beginning after December 31, 2021, allowing individuals to claim credits against income tax with excess amounts refunded by the commissioner.

• Converts the property tax refund program from a separate refund payment system to an income tax credit, with appropriations from the general fund to cover refunds exceeding tax liability.

• Modifies income definitions and subtraction allowances in chapter 290A to align with the new credit structure, effective for credits based on property taxes payable in 2023 and rent paid in 2022.

• Changes terminology throughout chapter 290A from "claimant" to "taxpayer" and updates references from "refunds" to "credits" to reflect the shift to an income tax credit mechanism.

• Repeals sections 290A.07 (payment authority and timing provisions) and 290A.23 (separate appropriations for renters credit and annual appropriations) as payment functions transfer to the income tax system.