The bill modifies the provisions related to individual income tax and corporate franchise tax refunds in Minnesota. It amends Minnesota Statutes 2024, section 289A.50, subdivision 1, to require that refunds include interest calculated on payments of estimated tax made by S corporations, partnerships, or corporations. The interest is calculated from the date of the installment payment to either the date the refund claim is made or the tax due date, whichever comes first. The interest rate for these refunds will match the rate used for interest paid to the commissioner under a different statute.

Additionally, the bill specifies that the new provisions 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 overpayments, thereby enhancing fairness in the tax refund process.

Statutes affected:
Introduction: 289A.50