Tax refunds; tip income tax subtraction provided, Minnesota child tax credit expanded, onetime expansion of property tax refunds provided, and new fifth tier individual income tax rate established.

This bill introduces several tax changes in Minnesota, including allowing workers to subtract qualified tip income from their taxable income, expanding the state child tax credit, and providing a one-time increase in property tax refunds. It also establishes a new fifth tax bracket for high-income earners, creating a 10.7 percent rate on income above $1 million for married couples filing jointly and $600,000 for single filers. These provisions directly affect Minnesota taxpayers by modifying how income is calculated and taxed, with the tip income subtraction applying retroactively to taxable years beginning after December 31, 2024.