Drazkowski ROTH Retirement Income Bill

A bill authored by Senator Steve Drazkowski (R-Mazeppa) aimed at providing direct property tax relief to Minnesota homeowners received its first hearing Tuesday in the Senate Taxes Committee.

The bipartisan proposal, seeks to change how ROTH retirement income is defined when determining eligibility for property tax refunds, potentially increasing the amount of relief many families receive.  

The Drazkowski bill would exclude Roth retirement distributions from the calculation of household income used to determine property tax refund amounts. 

The Drazkowski bill seeks to align homeowner and renter laws so homeowners don't have to count Roth retirement accounts as household income for property tax refund applications. 

Under the Drazkowski proposal, approximately 11,000 Minnesota homeowners would see an average increase of $180 in their property tax refunds.

The change would take effect for refunds based on property taxes payable in 2025. This would amount to $2 million in relief annually, starting in FY 2026. 

Fred Majerus, a constituent from Pine Island, was scheduled to testify in support of the bill, but he was unable to due to technical difficulties in the committee room. 

The bill was laid over for possible inclusion in a larger tax bill later this session.