ST. PAUL, MN – Today the Senate passed a tax conformity bill, bringing Minnesota in line with recent federal tax changes and cutting tax collections by more than $100 million. The bill was passed with unanimous support and is headed to the Governor’s desk for his signature.
“Senate Republicans have been cutting taxes for Minnesotans since 2017, and I’m glad we continue the trend with this bill today. We have a $17.6 billion surplus and we have to give it back to the taxpayers. This bill does that in a very simple and bipartisan way,” Senate Minority Leader Mark Johnson (R- East Grand Forks) said.
The bill aligns the Minnesota tax code with Federal tax adjustments that resulted in many tax changes, including: The Coronavirus Aid, Relief, and Economic Security (CARES) Act from 2020, The American Rescue Plan (ARPA) Act from 2021, and The Inflation Reduction Act (IRA) from 2022.
Notable provisions in the bill:
- Expand eligible expenses to college savings accounts through Section 529 plans
- Exclude shuttered venue operator grants from being counted as income
- Allows for student loan payments by employers
- Increases the amount a business can provide for employee child care benefits
Missing from the bill is the elimination of the tax on Social Security, or any reduction in personal income tax rates. Senate Republicans tried to amend these changes to the bill, but Democrats opposed the move through parliamentary procedure.
“This is an early victory, and I would urge Democrats to continue to take input and work from a point of consensus with their proposals. That doesn’t seem to be the case with their early priorities, but they have an opportunity to reset their course and earn the trust of every Minnesotan by working in a collaborative and transparent way,” Johnson concluded.