This page supplements the Minnesota House Research Department short subject Revenue Recapture Program,
which explains the program that allows the state and some local governments to
collect debts by intercepting tax refunds.
How many taxpayers are subject to revenue recapture?
Revenue Recapture Amounts
CY 1997-2016
| Calendar Year |
Number of Offsets |
Dollar Amount of Recapture |
| 1997 |
110,746 |
$27,728,038 |
| 1998 |
136,726 |
$37,255,523 |
| 1999 |
270,466 |
$81,543,352 |
| 2000 |
280,766 |
$62,907,645 |
| 2001 |
300,093 |
$70,471,518 |
| 2002 |
153,200 |
$43,060,194 |
| 2003 |
184,641 |
$51,206,131 |
| 2004 |
204,077 |
$54,804,757 |
| 2005 |
210,655 |
$59,247,902 |
| 2006 |
179,754 |
$59,945,770 |
| 2007 |
211,636 |
$68,275,418 |
| 2008 |
230,911 |
$87,756,822 |
| 2009 |
216,623 |
$72,845,049 |
| 2010 |
226,754 |
$78,173,924 |
| 2011 |
193,629 |
$63,231,794 |
| 2012 |
231,069 |
$71,699,789 |
| 2013 |
228,262
| $67,983,144 |
| 2014 |
238,154
| $68,557,048 |
| 2015 |
225,722
| $68,203,645 |
| 2016 |
214,030
| $66,433,954 |
2011 to 2016 data excludes offsets for unpaid state taxes,
which are administered separately from revenue recapture. In 2016, there were 91,530 offsets
for $30,612,243 in unpaid state taxes.
Data excludes amounts offset on behalf of the IRS to satisfy debts for taxes and other debts owed to the federal government.
In 2016, $16,998,209 offset federal debts and unpaid taxes.
Source: Minnesota Department of Revenue
|
The number of offsets increased significantly with the payment of sales tax rebates in
1999, 2000, and 2001. These rebates generated tax refunds for many individuals who
normally do not receive refunds, generating substantial increases in the number of offsets
and amounts collected under revenue recapture. With the end of rebates, calendar year 2002
revenue recapture amounts declined significantly. The decreased number and amount of offsets in 2011 reflects changes to the
Department of Revenue's tracking system, with unpaid state taxes not aggregated with revenue recapture offsets.
What are the types of debts collected under revenue recapture?
The table below shows the amounts collected under revenue recapture for four main
categories of debts (as set by the priorities under law) for calendar years 1997-2014.
Unpaid Minnesota taxes are DOR accounts receivable and include interest and penalty
obligations, as well as state taxes, and are offset in advance of revenue recapture claims. Restitution refers to amounts courts have ordered
criminal defendants to repay to the victims of their crimes. General is a residual
category that includes all other types of debt, such as repayment of public or medical
assistance, student loans, unpaid MinnesotaCare premiums, etc.
Revenue Recapture Amounts and Unpaid Minnesota Taxes by Type of Debt
CY 1997-2016
| |
Unpaid MN Taxes |
Child Support |
Restitution |
General* |
Total |
| 1997 |
$7,679,474 |
$7,622,572 |
$450,604 |
$11,975,389 |
$27,728,038 |
| 1998 |
10,130,307 |
10,454,207 |
741,417 |
15,929,592 |
$37,255,523 |
| 1999 |
28,554,436 |
21,617,039 |
2,595,787 |
28,776,091 |
$81,543,352 |
| 2000 |
21,552,677 |
14,935,510 |
1,324,206 |
25,095,253 |
$62,907,645 |
| 2001 |
26,455,041 |
15,197,123 |
1,480,699 |
27,338,655 |
$70,471,518 |
| 2002 |
13,128,532 |
8,459,368 |
1,025,371 |
20,446,923 |
$43,060,194 |
| 2003 |
15,727,192 |
10,241,108 |
1,207,371 |
24,030,460 |
$51,206,131 |
| 2004 |
14,560,032 |
11,072,856 |
1,512,524 |
27,659,345 |
$54,804,757 |
| 2005 |
16,073,889 |
10,983,223 |
1,635,899 |
30,554,891 |
$59,247,902 |
| 2006 |
16,512,065 |
11,815,553 |
1,717,846 |
29,900,306 |
$59,945,770 |
| 2007 |
17,853,322 |
12,435,729 |
1,852,321 |
36,134,046 |
$68,275,418 |
| 2008 |
35,737,618 |
13,043,940 |
1,838,535 |
37,136,729 |
$87,756,822 |
| 2009 |
21,166,472 |
12,049,970 |
1,704,661 |
37,487,008 |
$72,408,110 |
| 2010 |
25,112,769 |
11,718,726 |
1,425,118 |
39,889,809 |
$78,785,924 |
| 2011 |
29,609,189 |
12,122,373 |
1,229,431 |
49,879,990 |
$92,840,983 |
| 2012 |
33,837,705 |
12,661,494 |
1,048,609 |
57,989,686 |
$105,537,494 |
| 2013 |
33,268,282 |
12,026,109 |
561,481 |
55,395,554 |
$101,251,426 |
| 2014 |
34,652,280 |
12,228,124 |
582,738 |
55,746,187 |
$103,209,329 |
| 2015 |
35,220,923 |
12,289,312 |
585,010 |
55,329,323 |
$103,424,567 |
| 2016 |
30,612,243 |
12,361,716 |
594,494 |
53,477,745 |
$97,046,197 |
| Total |
$467,444,447 |
$245,336,051 |
$25,114,121 |
$720,172,981 |
$1,458,067,600 |
| * Includes claims for hospitals and ambulance services |
November 2016