Today Senator Mark Johnson (R- East Grand Forks) voted to pass 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 unanimously 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,” Johnson 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.
