HF 170

01/14/25   REVISOR  EAP/ES  25-01422
This Document can be made available
in alternative formats upon request  State of Minnesota
  HOUSE OF REPRESENTATIVES
  NINETY-FOURTH SESSION
  H. F. No.   170
02/10/2025     Authored by Davids, Burkel, Schultz and Harder
  The bill was read for the first time and referred to the Committee on Taxes
1.1A bill for an act
1.2relating to taxation; estate; providing for a ten-year phaseout of the estate tax;
1.3amending Minnesota Statutes 2024, section 291.03, subdivision 1.
1.4BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
1.5Section 1. Minnesota Statutes 2024, section 291.03, subdivision 1, is amended to read:
1.6Subdivision 1. Tax amount. (a) The tax imposed must be computed by applying to the
1.7Minnesota taxable estate the following schedule of rates and then the resulting amount
1.8multiplied by a fraction, not greater than one, the numerator of which is the value of the
1.9Minnesota gross estate plus the value of gifts under section 291.016, subdivision 2, clause
1.10(3), with a Minnesota situs, and the denominator of which is the federal gross estate plus
1.11the value of gifts under section 291.016, subdivision 2, clause (3):
1.12(a) For estates of decedents dying in 2017:
1.13Amount of Minnesota Taxable Estate  Rate of Tax
1.14Not over $5,100,000  12 percent
1.15Over $5,100,000 but not over $7,100,000  $612,000 plus 12.8 percent of the excess over
1.16$5,100,000
1.17Over $7,100,000 but not over $8,100,000 $868,000 plus 13.6 percent of the excess over
1.18$7,100,000
1.19Over $8,100,000 but not over $9,100,000 $1,004,000 plus 14.4 percent of the excess
1.20over $8,100,000
1.21Over $9,100,000 but not over $10,100,000 $1,148,000 plus 15.2 percent of the excess
1.22over $9,100,000
1.23Over $10,100,000  $1,300,000 plus 16 percent of the excess over
1.24$10,100,000
1.25(b) For estates of decedents dying in 2018 and thereafter:
Section 1.  1
01/14/25   REVISOR  EAP/ES  25-01422
2.1     Amount of Minnesota Taxable Estate  Rate of Tax
2.2  Not over $7,100,000  13 percent
2.3  Over $7,100,000 but not over $8,100,000  $923,000 plus 13.6 percent of the excess over
2.4$7,100,000
2.5  Over $8,100,000 but not over $9,100,000 $1,059,000 plus 14.4 percent of the excess
2.6over $8,100,000
2.7  Over $9,100,000 but not over $10,100,000 $1,203,000 plus 15.2 percent of the excess
2.8over $9,100,000
2.9  Over $10,100,000  $1,355,000 plus 16 percent of the excess over
2.10$10,100,000
2.11     (b) Beginning July 1, 2025, and each July 1 thereafter through June 30, 2034, the
2.12 commissioner shall:
2.13     (1) reduce the rates in paragraph (a) by 1.6 percentage points until each rate equals zero.
2.14 If a reduction reduces the rate to less than zero, the rate for that bracket is deemed to be
2.15 zero; and
2.16     (2) reduce the amounts added to the rate brackets according to the adjustment under
2.17 clause (1) until each amount is reduced to zero.
2.18     EFFECTIVE DATE. This section is effective for estates of decedents dying after June
2.19 30, 2025.
Section 1.  2