State Sen. Carrie Ruud, R-Breezy Point, and state Rep. Dale Lueck, R-Aitkin, authored legislation to eliminate the Minnesota tax on Social Security income.
The bill would phase out the tax over the next five years. More than 637,000 Minnesotans stand to benefit by saving more than $600 per person each and every year once the tax is fully phased out. Research shows that these changes would positively affect more than 70 percent of Minnesota seniors.
"Minnesota is one of a minority of states that still taxes our senior's Social Security benefits," Lueck said. "It's time we ended that practice here in Minnesota.
"Minnesota was recently ranked fourth on Kiplinger's Least Tax-Friendly States for Retirees," he added. "This legislation would allow more seniors to stay and enjoy their golden years in Minnesota with their families."
Ruud said: "In fact, 38 percent of Senate District 10 would be affected by this legislation. 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 Senate Tax Reform Division heard the bill Jan. 28, and it awaits a House Tax Committee hearing.