This bill amends Minnesota Statutes 2024, section 289A.50, subdivision 1, to modify the process for individual income tax and corporate franchise tax refunds. It introduces a requirement that refunds must include interest calculated on payments of estimated tax made by S corporations, partnerships, or corporations. The interest is calculated from the date the installment payment is made until either the date the claim for a refund is filed or the due date for paying the tax, using the same interest rate applied to amounts paid to the commissioner under section 289A.55, subdivision 1.

Additionally, the bill specifies that the new provisions regarding interest on refunds will take effect for refunds due on taxes paid for taxable years beginning after December 31, 2024. This change aims to ensure that taxpayers receive not only their overpaid taxes but also interest on those amounts, thereby enhancing fairness in the tax refund process.

Statutes affected:
Introduction: 289A.50