This bill proposes amendments to Minnesota's taxation laws, specifically regarding individual income tax. It introduces new subtractions for various types of income, including overtime pay, tips, bonuses, and winnings from nonprofit lawful gambling organizations. The bill adds subdivisions to Minnesota Statutes 2024, section 290.0132, defining these income types and establishing them as subtractions from taxable income. Each of these provisions will take effect for taxable years beginning after December 31, 2024.

Additionally, the bill modifies withholding provisions in Minnesota Statutes 2024, section 290.091 and section 290.92. It removes outdated language related to tips and introduces a new subdivision that exempts tip income from withholding requirements. The amendments aim to simplify the tax process for individuals receiving these types of income and ensure that the withholding aligns with the new definitions and exemptions established in the bill. The effective date for these changes is also set for taxable years beginning after December 31, 2024.

Statutes affected:
Introduction: 290.0132, 290.091, 290.92