SF3778

Purpose

Introduce a new tax subtraction for Minnesota individual income tax to recognize and encourage unpaid volunteer service performed by school resource officers (SROs). The subtraction reduces taxable income based on the value of the volunteer work.

Main Provisions

• Adds Subdivision 40 to Minnesota Statutes 2024, section 290.0132.
• The value of unpaid volunteer service performed by an individual as a school resource officer is a subtraction from Minnesota taxable income.
• This subtraction only applies if the service is performed in the individual’s capacity as a school resource officer; work not in that capacity is ineligible.
• The subtraction amount equals:
  • the number of hours of unpaid volunteer service as a school resource officer times
  • the hourly wage that would have been paid to a school resource officer by an employer (or by a person paying an individual for SRO services).
• To claim the subtraction, the individual must provide documentation from the school:
  • the total hours of service, and
  • the hourly wage that would have been paid to a school resource officer.
• Definitions for this subdivision:
  • "school" has the meaning in section 626.8482, subdivision 1, paragraph b.
  • "school resource officer" has the meaning in section 626.8482, subdivision 1, paragraph c.
  • "wages" means:
  • (i) the amount paid by an employer to a school resource officer (as reported under Internal Revenue Code section 6051), or
  • (ii) the amount paid by any person to an individual for SRO services (as reported under IRC section 6041A).

How This Changes Existing Law

• Creates a new subtraction in the Minnesota individual income tax code (adds Subd. 40 to section 290.0132).
• Establishes a formula for valuing unpaid volunteer SRO work (hours × presumed wage) rather than leaving volunteer service untaxed.
• Requires specific documentation to verify eligibility and amount.
• Ties wage determination to IRS reporting rules (IRC sections 6051 and 6041A) and references defined terms for “school” and “school resource officer” from related statutes.

Administration and Eligibility (Key Points)

• Eligible participants: individuals who perform unpaid volunteer duties as a school resource officer.
• Ineligible: unpaid work not performed in the individual’s capacity as a school resource officer.
• Documentation required: school-issued records showing hours and the wage that would have been paid.
• Calculation reference: use the wage that would have been paid to a SRO by an employer or by a payer for SRO services, as reported under the specified IRS codes.

Definitions and Related Terms

• school resource officer (SRO)
• school
• wages
• Internal Revenue Code sections 6051 and 6041A
• documentation
• hours of service
• subtraction (state income tax subtraction)

Relevant Terms - Volunteer service - School resource officer - Subtraction - Minnesota Statutes 2024 section 290.0132 - Subdivision 40 - Hours - Hourly wage - Employer - Employee - IRS code 6051 - IRS code 6041A - Documentation - Capacity as a school resource officer - Definition of school and SRO (626.8482)