Minnesota SF2867 establishes a fifth tier of the individual income tax to offset lost federal Medicaid funds.

SF2867 amends Minnesota Statutes to introduce a fifth tier of the individual income tax. This new tax tier aims to offset revenue lost due to changes in federal Medicaid funding. The bill specifies income brackets and corresponding tax rates for different income levels, affecting both residents and non-residents. It also mandates the commissioner of management and budget to estimate the net change in federal Medicaid funds by December 31, 2025, to help set the tax rate for fiscal years 2026 and 2027.

Minnesota SF2867 establishes a fifth tier of the individual income tax to offset lost federal Medicaid funds.

SF2867 amends Minnesota Statutes to introduce a fifth tier of the individual income tax. This new tax tier aims to offset revenue lost due to changes in federal Medicaid funding. The bill specifies income brackets and corresponding tax rates for different income levels, affecting both residents and non-residents. It also mandates the commissioner of management and budget to estimate the net change in federal Medicaid funds by December 31, 2025, to help set the tax rate for fiscal years 2026 and 2027.