ST. PAUL – Rep. Dale Lueck, R-Aitkin, has introduced a House bill allowing Minnesota senior citizens to receive hundreds of dollars more each year in Social Security benefits.
Minnesota is one of only five states which currently taxes Social Security income. A bill Lueck authored in the House would put the state in line with the other 45 that do not tax this income for seniors.
The bill (H.F. 304) would benefit some 637,000 Minnesotans – many of whom live on fixed incomes – by saving them more than $600 per person each year once the tax is fully phased out over five years.
“Minnesota is in a very small minority of states that taxes our seniors’ social security benefits; it’s time we ended that practice here in Minnesota,” Lueck said. “The sad fact is Minnesota recently ranked the fourth-worst home for retirees in terms of taxation. This legislation would allow more seniors to stay and enjoy their golden years in Minnesota with their families.”
Research shows more than 70 percent of Minnesota seniors would reap rewards through the change Ruud and Lueck are offering. A large number of those seniors live in the area the two legislators represent.
“Approximately 38 percent of Senate District 10 would benefit from this legislation,” said Sen. Carrie Ruud, R-Breezy Point, author of the Senate’s companion bill. “Additionally, the entire state will benefit from the retained revenue from property taxes, sales taxes, and income taxes that retirees contribute to our state.”
The legislation was heard by the Senate Tax Reform Division on Tuesday and awaits a House Tax Committee hearing.