Skip to main content Skip to office menu Skip to footer
Capital IconMinnesota Legislature

Taxes

THIRTY-FOURTH MEETING

2013-2014 Regular Session - Tuesday, February 25, 2014

STATE OF MINNESOTA THIRTY-FOURTH MEETING
HOUSE OF REPRESENTATIVES EIGHTY-EIGHTH SESSION

COMMITTEE ON TAXES
Chair, Representative Ann Lenczewski

MINUTES

Representative Lenczewski, Chair of Committee on Taxes, called the meeting to order at 1:15 pm on February 25, 2014 in Room 10 of the State Office Building.

The Committee Legislative Assistant noted the roll.

Members present:
Lenczewski, Chair
Loeffler, Vice Chair
Davids, Lead
Anderson, S.
Anzelc
Barrett
Benson, J.
Carlson
Davnie
Drazkowski
Erhardt
Garofalo
Hansen
Lesch
Liebling
Lillie
Loon
Mack
Marquart
Melin
Myhra
Paymar
Peppin
Runbeck
Schoen
Simonson
Slocum
Zellers

Members excused:

A quorum was present.

The following bills were referred to the Committee on Property & Local Tax Division:
HF 2137
HF 2102
HF 2013
HF 1932
HF1914
HF 1905
HF1895
HF 1884
HF 1883
HF 1858

Chair Lenczewski moved the H2106A3 amendment. The motion prevailed. The amendment was adopted.

HF 2106 was laid over for possible inclusion to an omnibus tax bill.

Representative Erhardt moved HF 1957. Representative Erhardt moved the H1957A1 amendment. The motion prevailed. The amendment adopted. HF 1957 was laid over for possible inclusion to an omnibus tax bill.

Representative Loeffler moved HF 2024. The bill was laid over for possible inclusion to an omnibus tax bill.

Representative Davids moved HF 2002. Representative Kim Norton presented HF 2002. HF 2002 was laid over for possible inclusion to an omnibus tax bill.

Representative Davids moved HF 1959. Representative Davids moved the H1959A1 amendment. The motion prevailed. The amendment was adopted. Representative Davids presented HF 1959. HF 1959 was laid over for possible inclusion to an omnibus tax bill.

Representative Loon moved HF 1969. HF 1969 was laid over for possible inclusion to an omnibus tax bill.

Aaron Norman and Kristy Norman testified on HF 2002 and HF 1969.

The following individuals testified on Federal Conformity:
Brian Rusche, JRLC
Nan Madden, Wilder Foundation, AccountAbility Minnesota
Ryan Hamilton, MN Realtors
Todd Koch
Beth Kadoun, MN Chamber of Commerce

Representative Loeffler moved HF 1896. Representative Halverson presented HF 1896. HF 1896 was laid over for possible inclusion to an omnibus tax bill.

Representative Simonson moved HF 1877. Representative Isaacson presented HF 1877. HF 1877 was laid over for possible inclusion to an omnibus tax bill.

Representative Davids moved HF 1968. Representative O’Neill presented HF 1968. HF 1968 was laid over for possible inclusion to an omnibus tax bill.

Representative Kelly presented HF 1908. Representative Davids moved HF 1908. HF 1908 was laid over for possible inclusion to an omnibus tax bill.

Representative Drazkowski moved HF 2121. Representative Quam presented HF 2121. HF 2121 was laid over for possible inclusion to an omnibus tax bill.

The following individuals testified on Storage and Warehousing Repeals:

Kathy Forester, Strategic Warehousing
Randy Olson, Red Wing Port Authority
John Turner, Vice President Product Fulfillment for Skybridge Americas
Steve Yockey, Distribution Alternatives
Brandon Champeau, United Properties
Ed Reynoso, Teamsters Joint Council 32

Representative Anzelc moved HF 1893. Representative McNamar presented HF 1893. HF 1893 was laid over for future consideration.

Representative Anzelc moved HF 1950. Representative McNamar presented HF 1950. HF 1950 was laid over for possible inclusion to an omnibus tax bill.

Chair Lenczewski moved HF 1888. HF 1888 was laid over for possible inclusion to an omnibus tax bill.

Chair Lenczewski moved HF 2105. HF 2105 was laid over for possible inclusion to an omnibus tax bill.

Representative Drazkowski moved HF 1973. Representative Wills presented HF 1973. HF 1973 was laid over for possible inclusion to an omnibus tax bill.

Representative Drazkowski moved HF 1977. Representative Scott presented HF 1977. HF 1977 was laid over for possible inclusion to an omnibus tax bill.

Representative Zellers moved HF 2123. Representative Quam presented HF 2123. HF 2123 was laid over for possible inclusion to an omnibus tax bill.

The following individuals testified in on the Farm and Commercial Equipment Repair Repeals:

Thom Petersen, Minnesota Farmers Union
Wayne Brandt, MN Forest Industries
Doug Busselman, MN Farm Bureau
Mike Hickey, National Federation of Independent Business
Dave Koebele, Pro-Tech Interconnect Solutions
Mike Jorgenson, Impressions Inc.
Rich Strom, MN South Dakota Equipment Dealers Association

Chair Lenczewski moved HF 2181. Representative Rosenthal presented HF 2181. HF 2181 was laid over for possible inclusion to an omnibus tax bill.

Chair Lenczewski moved HF 1889. Representative Isaacson presented HF 1889. HF 1889 was laid over for future inclusion to an omnibus tax bill.

Representative Zellers moved HF 2124. Representative Quam presented HF 2124. HF 2124 was laid over for possible inclusion to an omnibus tax bill.

Representative Zellers moved HF 1939. Representative Zellers presented HF 1939. HF 1939 was laid over for possible inclusion to an omnibus tax bill.

Representative Anderson moved HF 2014. Representative Anderson presented HF 2014.

Representative Anderson moved the H2014A1 amendment. The motion prevailed. the HF 2014A1 amendment was adopted.

HF 2014 was laid over for possible inclusion to an omnibus tax bill.

Representative Drazkowski moved HF 1909. Representative Drazkowski presented HF 1909. HF 1909 was laid over for possible inclusion to an omnibus tax bill.

Chair Lenczewski moved HF 1777.

The following individuals testified on All Business to Business Tax Repeals:

Beth Kadoun, United Jobs Coalition and MN Chamber of Commerce
Reverend Nazim Fakir, President of the Minnesota Chapter of the Ministerial Alliance Against the Digital Divide (MAADD)
Mike Martin, Minnesota Cable Communication Association
Brent Christensen, MN Telecom Alliance

Chair Lenczewski moved the H1777DE1 amendment. The motion prevailed. The H1777DE1 amendmenet was adopted.

Chair Lenczewski moved the H1777A1 amendment. The motion prevailed. The H1777A1 amendment was adopted.




The meeting was adjourned at 4:18 PM.



___________________________
Representative Ann Lenczewski, Chair



_________________________________________
Gina Kunesh, Committee Legislative Assistant
More Info On This Meeting..
Bills Added:
  • HF2106 (Lenczewski) - Internal Revenue Code changes conformed, and working family credit phase-out extended for married filers.
  • HF1957 (Erhardt) - Taxation; discharge of qualified principal residence indebtedness conformed to the federal exclusion.
  • HF2024 (Loeffler) - Qualified tuition and related expenses for tax year 2013 deductions conformed to federal extension.
  • HF2002 (Norton) - Federal adoption assistance tax exclusion conformed.
  • HF1959 (Davids) - Internal Revenue Code changes conformed, and working family credit phase-out extended for married filers.
  • HF1969 (Garofalo) - Federal adoption assistance tax exclusion conformed.
  • HF1777 (Lenczewski) - Omnibus tax bill.
  • HF1896 (Halverson) - Storage and warehousing service tax repealed.
  • HF1877 (Isaacson) - Storage and warehousing service tax repealed.
  • HF1968 (O'Neill) - Storage and warehousing service tax repealed.
  • HF1908 (Kelly) - Storage and warehousing service tax repealed.
  • HF2121 (Quam) - Storage and warehousing service tax repealed.
  • HF1893 (McNamar) - Tax on repairing and maintaining commercial and industrial machinery and equipment repealed.
  • HF1950 (McNamar) - Farm equipment repair services labor tax repealed.
  • HF1888 (Isaacson) - Commercial and industrial machinery repair and maintenance tax repealed.
  • HF1973 (Wills) - Business transaction tax repealed, and telecommunications equipment exemption reinstated.
  • HF1977 (Scott) - Business transactions tax repealed.
  • HF2105 (Hamilton) - Tax on repairing and maintaining commercial and industrial machinery and equipment repealed.
  • HF1889 (Isaacson) - Telecommunications equipment tax exemption reinstated.
  • HF1900 (Johnson) - Telecommunication and pay television machinery and equipment exemption reinstated.
  • HF1939 (Zellers) - Business transaction taxes repealed.
  • HF2123 (Quam) - Tax on repairing and maintaining commercial and industrial machinery and equipment repealed.
  • HF2124 (Quam) - Tax on repairing and maintaining electronic and precision equipment repealed.
Documents:
  • - 2/21/2014
  • - 2/21/2014
  • - 2/21/2014
House TV Video:
View Archive

00:00 - Gavel.
FEDERAL CONFORMITY BILLS:.
04:43 - HF2106 (Lenczewski) Income and franchise taxation conformed to changes in the Internal Revenue Code.
09:45 - HF1957 (Erhardt) Taxation; discharge of qualified principal residence indebtedness conformed to the federal exclusion.
14:53 - HF2024 (Loeffler) Qualified tuition and related expenses for tax year 2013 deductions conformed to federal extension.
16:42 - HF2002 (Norton) Federal adoption assistance taxation exclusion conformed to.
18:52 - HF1959 (Davids) Taxation; Internal Revenue Code changes conformed to and working family credit phase-out for married filers extended.
20:30 - HF1969 (Garofalo) Federal adoption assistance tax exclusion conformed to.
Public testimony on above bills.
BUSINESS TO BUSINESS TAX REPEAL BILLS.
• Storage and warehousing:.
45:10 - HF1896 (Halverson) Storage and warehousing service sales tax repealed.
47:42 - HF1877 (Isaacson) Storage and warehousing services tax repealed.
49:05 - HF1968 (O'Neill) Storage and warehousing service tax repealed.
52:05 - HF1908 (Kelly) Storage and warehousing services tax repealed.
1:01:27 - HF2121 (Quam) Storage and warehousing service tax repealed.
Public testimony on above bills.
• FARM AND COMMERCIAL REPAIR:.
1:39:54 - HF1893 (McNamar) Commercial and industrial machinery and equipment repair and maintenance tax repealed.
1:42:15 - HF1950 (McNamar) Farm equipment repair services labor tax repealed.
1:47:20 - HF1888 (Isaacson) Commercial and industrial machinery repair and maintenance tax repealed.
1:48:07 - HF1973 (Wills) Business transaction tax repealed, and telecommunications equipment exemption reinstated.
1:52:08 - HF1977 (Scott) Business transactions tax repealed.
1:53:57 - HF2123 (Quam) Commercial and industrial machinery and equipment repair tax repealed.
• Telecommunications:.
2:17:35 - HF2181 (Rosenthal) Telecommunications equipment tax exemption reinstated.
2:19:31 - HF1889 (Isaacson) Telecommunications equipment tax exemption reinstated.
2:20:18 - HF2124 (Quam) Tax on repairing and maintaining electronic and precision equipment repealed.
2:22:54 - HF1939 (Zellers) Business transaction taxes repealed.
2:28:11 - * HF2014 (Anderson, S.) Tax provisions repealed, exemptions reinstated, and money appropriated.
2:30:45 - * HF1909 (Drazkowski) Gift tax and business-to-business taxes repealed, wheelage tax increase rescinded, conservation easement valuation reductions reinstated, school board authority to authorize referendum levies rescinded, student achievement levy repealed, and prior animal waste technician fee and licensing requirements reverted to.
2:36:22 - HF1777 (Lenczewski) Tax returns; sales and use; June accelerated tax payment repealed.
* Hearing will be limited to federal conformity, excluding the gift and estate taxes, and business to business tax repeal provisions.
Public testimony on above bills.
Runs 3 hours, 5 minutes.


HF1909 (Drazkowski) Partial* Gift tax and business-to-business taxes repealed, wheelage tax increase rescinded, conservation easement valuation reductions reinstated, school board authority to authorize referendum levies rescinded, student achievement levy repealed, and prior animal waste technician fee and licensing requirements reverted to.

HFXXXX (Rosenthal) Telecommunications equipment tax exemption reinstated. (Will be heard between HF2105 and HF1889)

HF2014 (Anderson) Partial* Tax provisions repealed, exemptions reinstated, and money appropriated. (Will be heard between 1939 and 2123)

* Hearing will be limited to federal conformity, excluding the gift and estate taxes, and business to business tax repeal provisions.

Bills may be added to the agenda.