On Thursday Senator Carrie Ruud (R-Breezy Point) presented legislation to the Senate Committee on Taxes that provides a phased-in subtraction of taxable Social Security benefits for purposes of calculating taxable income in the state of Minnesota. 

Under current law, Minnesota taxes Social Security benefits based on income, which only started in 1985 after the federal government began taxing these benefits at the federal level. Currently, only 13 states, including Minnesota, impose a tax on Social Security benefits. 

“I’ve carried this bill since 2013, and though we made progress in 2017, I’m hopeful we can finally phase out this tax,” said Senator Ruud. “Many of my constituents are senior citizens, and many of them have to homestead in other states because of Minnesota’s high taxes. This bill is especially timely as we work to recover from the pandemic. Our seniors have lost so much in the past year, and this bill will give them a bit more of their income and will help them recuperate after a year of hardship.”

If enacted, this legislation would lower the tax on social security benefits by 25% every year until the tax is completely phased out. This bill was laid over in the Taxes Committee.