The Minnesota State Legislature has introduced Senate Bill 2673, aimed at revising income tax filing requirements and repealing certain provisions related to the child tax credit. Introduced on March 17, 2025, the bill seeks to clarify the definitions and obligations surrounding gross income and tax returns for individuals receiving property from decedents.

One of the key provisions of the bill mandates that individuals who receive property from a decedent must file a tax return, as defined in section 270C.58. Additionally, the bill stipulates that the Commissioner of Revenue will annually determine the gross income thresholds that require individuals to file a return, based on deductions outlined in section 290.0123. Notably, the bill also requires individuals who have opted for advance payments of the child tax credit to file a Minnesota income tax return for each taxable year.

The bill includes a repeal of Minnesota Statutes 2024, specifically sections related to the child tax credit, which may have significant implications for families relying on this financial support. The repeal is set to take effect for taxable years beginning after December 31, 2025.

Debate surrounding Senate Bill 2673 has focused on its potential impact on low- and middle-income families, particularly those who benefit from the child tax credit. Critics argue that repealing these provisions could place additional financial burdens on vulnerable populations, while supporters contend that the changes will streamline tax filing processes and improve compliance.

As the bill progresses through the legislative process, its implications for Minnesota's tax structure and the financial well-being of its residents remain a central concern. Stakeholders are closely monitoring the discussions, as the outcomes could reshape tax obligations for many individuals and families across the state.