State Sen. Carla Nelson introduced a bill on Monday that would eliminate the tax on social security income.
If approved by a DFL controlled legislature in the 2023 session, Minnesotans could save around $1,200 on their tax bill, but it would erase $500,000 million in revenue for the state, according to the Department of Revenue.
Minnesota started taxing social security income in 1985 in order to conform with federal tax regulations, which started in 1983, according to a Minnesota House Research Department report from 2020.
Nelson said that the tax on social security income is the number one issue raised by her constituents.
Minnesota is one of only 12 state that taxes social security income.