Sen.Carrie Ruud, R-Breezy Point, and Rep. Dale Lueck, R-Aitkin, have authored legislation to eliminate the Minnesota tax on Social Security income. The bill would phase out the tax over the next five years. Over 637,000 Minnesotans stand to benefit by saving over $600 per person each and every year once the tax is fully phased out. Research shows that over 70 percent of Minnesota seniors would be positively affected by these changes.
Lueck commented, "Minnesota is one of a minority of states that still taxes our senior's social security benefits, it's time we ended that practice here in Minnesota."
"Minnesota was recently ranked fourth on Kiplinger's Least Tax-Friendly States for Retirees. This legislation would allow more seniors to stay and enjoy their golden years in Minnesota with their families," said Lueck.
"In fact 38 percent of Senate District 10 would be affected by this legislation," said Ruud. "Additionally, the entire state will benefit from the retained revenue from property taxes, sales taxes, and income taxes that retirees contribute to our state," added Ruud.
The bill was heard by the Senate Tax Reform Division on Wednesday, and awaits a House Tax Committee hearing.
