ST. PAUL – Rep. Dale Lueck’s bill that would phase out Minnesota’s practice of taxing Social Security benefits cleared its first committee hurdle on this past Wednesday.
Minnesota is one of only six states to fully tax Social Security benefits. Legislation Lueck, R-Aitkin, introduced would help an estimated 637,000 elderly Minnesotans currently receiving Social Security retirement benefits. The bill would provide a an annual savings in the range of $280 to $600 per person depending on their individual situation. Lueck’s plan would phase out the state income tax on seniors’ Social Security retirement benefits over a five-year period.
“Our state is an outlier in that we continue to tax our seniors’ Social Security retirement income,” Lueck said. “This legislation provides some much needed breathing room for our seniors, especially in Aitkin and Crow Wing counties where we have a significant population of senior citizens living on fixed incomes.”
The bill cleared the House Aging and Long-Term Care Policy Committee and was referred to the Tax Committee for further consideration. Sen. Carrie Ruud, R-Breezy Point is the author of the Senate’s companion bill.