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SF1942 (Legislative Session 94 (2025-2026))

Federal estate tax exclusion amount conformation

Related bill: HF166

AI Generated Summary

Purpose

This bill changes Minnesota’s estate tax rules to align with the federal estate tax framework. It requires Minnesota estate tax filings for certain estates with Minnesota-related property and uses federal definitions for calculating when a return is needed.

Main Provisions

  • Adds a requirement that a Minnesota estate tax return must be filed if:
    • a federal estate tax return is required to be filed, or
    • the sum of the federal gross estate and federal adjusted taxable gifts (as defined in Internal Revenue Code section 2001b) made within three years of the decedent’s death exceeds a specified threshold, for estates with property that has a situs in Minnesota.
  • Thresholds by year (based on the decedent’s year of death):
    • 2014: $1,200,000
    • 2015: $1,400,000
    • 2016: $1,600,000
    • 2017: $2,100,000
    • 2018: $2,400,000
    • 2019: $2,700,000
    • 2020 and thereafter: $3,000,000
  • The Minnesota estate tax return must include a calculation of the Minnesota estate tax due.
  • The return must be signed by the personal representative.
  • The form to be used is the form prescribed by the Minnesota Commissioner of Revenue.
  • The filing applies to estates with a situs in Minnesota (property located in Minnesota).

Significant Changes to Existing Law

  • Creates a Minnesota estate tax filing obligation tied to federal estate tax concepts, rather than a static Minnesota-specific threshold.
  • Incorporates the federal gross estate and federal adjusted taxable gifts (as defined in IRC section 2001b) into the threshold determination.
  • Establishes year-specific filing thresholds that increase over time, culminating in a $3,000,000 threshold for estates dying in 2020 and later.
  • Requires the Minnesota estate tax return to include a computation of Minnesota tax due and to be filed on a commissioner-prescribed form, signed by the personal representative, for estates with Minnesota situs.

Compliance and Filing Details

  • Filing triggers require a Minnesota estate tax return when either a federal return is required or the combined federal gross estate and federal adjusted taxable gifts exceed the applicable threshold.
  • The return must compute Minnesota tax due and be signed by the personal representative.
  • The form used will be prescribed by the Minnesota Commissioner of Revenue.

Relevant Terms - Minnesota estate tax - estate tax return - personal representative - situs in Minnesota - federal gross estate - federal adjusted taxable gifts - Internal Revenue Code section 2001b - form prescribed by the commissioner - Minnesota Statutes 2024 section 289A.10 subdivision 1 - thresholds by year: 1,200,000; 1,400,000; 1,600,000; 2,100,000; 2,400,000; 2,700,000; 3,000,000

Bill text versions

Actions

DateChamberWhereTypeNameCommittee Name
February 27, 2025SenateActionIntroduction and first reading
February 27, 2025SenateActionReferred toTaxes
March 02, 2026SenateActionAuthor added

Citations

 
[
  {
    "analysis": {
      "added": [
        "Return triggers based on whether a federal estate tax return is required to be filed or the sum of federal gross estate and federal adjusted taxable gifts exceed specified thresholds.",
        "Specific threshold values for estates dying in 2014 through 2020 and thereafter (1,200,000; 1,400,000; 1,600,000; 2,100,000; 2,400,000; 2,700,000; 3,000,000) are established to determine when a Minnesota estate tax return must be filed.",
        "The Minnesota estate tax return must contain a computation of the Minnesota tax due and must be signed by the personal representative."
      ],
      "removed": [
        "The excerpt implies changes to existing provisions but does not enumerate explicit removals beyond the amended language."
      ],
      "summary": "Amends Minnesota Statutes 2024 section 289A.10, subdivision 1, to set a Minnesota estate tax return requirement mirroring the federal estate tax filing trigger and to establish thresholds based on the federal gross estate and federal adjusted taxable gifts for decedents dying in specified years.",
      "modified": [
        "Section 289A.10, subdivision 1 is amended to reflect new return requirements and threshold levels."
      ]
    },
    "citation": "289A.10",
    "subdivision": "1"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "Amends Minnesota Statutes 2024 section 291.016, subdivision 3.1.5, as part of the estate tax conformity effort; the excerpt does not include the specific textual changes.",
      "modified": [
        "Proposed modification to 291.016, subdivision 3.1.5; details not shown in the provided text."
      ]
    },
    "citation": "291.016",
    "subdivision": "3.1.5"
  },
  {
    "analysis": {
      "added": [],
      "removed": [],
      "summary": "References the federal Internal Revenue Code section 2001(b) to define the calculation basis for the federal gross estate and federal adjusted taxable gifts relevant to Minnesota estate tax filing thresholds.",
      "modified": [
        "Federal reference used to align Minnesota filing requirements with federal estate tax concepts."
      ]
    },
    "citation": "26 U.S.C. § 2001(b)",
    "subdivision": ""
  }
]

Progress through the legislative process

17%
In Committee

Sponsors

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