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Additional Data on Revenue Recapture

This page supplements the House Research short subject Revenue Recapture Program, which explains the program that allows the state and some local governments to collect debts by intercepting tax refunds. The publication is available on the House Research website: www.house.leg.state.mn.us/hrd/pubs/ss/ssrevrec.pdf

How many taxpayers are subject to revenue recapture?

Revenue Recapture Amounts
CY 1997-2015
Calendar Year Number of Offsets Dollar Amount of Recapture
1997 110,746 $27,728,038
1998 136,726 $37,255,523
1999 270,466 $81,543,352
2000 280,766 $62,907,645
2001 300,093 $70,471,518
2002 153,200 $43,060,194
2003 184,641 $51,206,131
2004 204,077 $54,804,757
2005 210,655 $59,247,902
2006 179,754 $59,945,770
2007 211,636 $68,275,418
2008 230,911 $87,756,822
2009 216,623 $72,845,049
2010 226,754 $78,173,924
2011 193,629 $63,231,794
2012 231,069 $71,699,789
2013 228,262 $67,983,144
2014 238,154 $68,557,048
2015 225,722 $68,203,645
2011 to 2015 data excludes offsets for unpaid state taxes, which are administered separately from revenue recapture. In 2015, there were 111,617 offsets for $35,220,923 in unpaid state taxes.
Data excludes amounts offset on behalf of the IRS to satisfy debts for taxes and other debts owed to the federal government. In 2015, $15,649,065 offset federal debts and unpaid taxes.
Source: Minnesota Department of Revenue

The number of offsets increased significantly with the payment of sales tax rebates in 1999, 2000, and 2001. These rebates generated tax refunds for many individuals who normally do not receive refunds, generating substantial increases in the number of offsets and amounts collected under revenue recapture. With the end of rebates, calendar year 2002 revenue recapture amounts declined significantly. The decreased number and amount of offsets in 2011 reflects changes to the Department of Revenue's tracking system, with unpaid state taxes not aggregated with revenue recapture offsets.

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What are the types of debts collected under revenue recapture?

The table below shows the amounts collected under revenue recapture for four main categories of debts (as set by the priorities under law) for calendar years 1997-2014. Unpaid Minnesota taxes are DOR accounts receivable and include interest and penalty obligations, as well as state taxes, and are offset in advance of revenue recapture claims. Restitution refers to amounts courts have ordered criminal defendants to repay to the victims of their crimes. General is a residual category that includes all other types of debt, such as repayment of public or medical assistance, student loans, unpaid MinnesotaCare premiums, etc.

Revenue Recapture Amounts and Unpaid Minnesota Taxes by Type of Debt
CY 1997-2015
  Unpaid MN Taxes Child Support Restitution General* Total
1997 $7,679,474 $7,622,572 $450,604 $11,975,389 $27,728,038
1998 10,130,307 10,454,207 741,417 15,929,592 $37,255,523
1999 28,554,436 21,617,039 2,595,787 28,776,091 $81,543,352
2000 21,552,677 14,935,510 1,324,206 25,095,253 $62,907,645
2001 26,455,041 15,197,123 1,480,699 27,338,655 $70,471,518
2002 13,128,532 8,459,368 1,025,371 20,446,923 $43,060,194
2003 15,727,192 10,241,108 1,207,371 24,030,460 $51,206,131
2004 14,560,032 11,072,856 1,512,524 27,659,345 $54,804,757
2005 16,073,889 10,983,223 1,635,899 30,554,891 $59,247,902
2006 16,512,065 11,815,553 1,717,846 29,900,306 $59,945,770
2007 17,853,322 12,435,729 1,852,321 36,134,046 $68,275,418
2008 35,737,618 13,043,940 1,838,535 37,136,729 $87,756,822
2009 21,166,472 12,049,970 1,704,661 37,487,008 $72,408,110
2010 25,112,769 11,718,726 1,425,118 39,889,809 $78,785,924
2011 29,609,189 12,122,373 1,229,431 49,879,990 $92,840,983
2012 33,837,705 12,661,494 1,048,609 57,989,686 $105,537,494
2013 33,268,282 12,026,109 561,481 55,395,554 $101,251,426
2014 34,652,280 12,228,124 582,738 55,746,187 $103,209,329
2015 35,220,923 12,289,312 585,010 55,329,323 $103,424,567
Total $436,832,205 $232,974,335 $24,519,627 $666,695,236 $1,361,021,404
* Includes claims for hospitals and ambulance services

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April 2017

House Research Department  ♦  600 State Office Building, Saint Paul, MN  55155  ♦  House.Research@house.mn  ♦  651-296-6753