This bill proposes amendments to Minnesota's taxation laws, specifically regarding individual income tax. It introduces new subtractions from taxable income for various types of earnings, 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 terms and establishing that they will be subtracted 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 It removes outdated language regarding the withholding of tips and introduces a new subdivision that exempts tip income from withholding requirements. The amendments aim to simplify the tax process for employers and employees while ensuring that specific types of income are recognized and treated favorably in the tax code. 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