Taxes

SEVENTEENTH MEETING

2023-2024 Regular Session - Tuesday, February 28, 2023

STATE OF MINNESOTA SEVENTEENTH MEETING
HOUSE OF REPRESENTATIVES NINETY-THIRD SESSION

TAXES COMMITTEE MINUTES

Representative Aisha Gomez, Chair of the Committee on Taxes, called the meeting to order at 1:06 PM on February 28, 2023 in Room 5 of the State Office Building.

The Committee Legislative Assistant noted the roll.

Members present:
GOMEZ, Aisha, Chair
NORRIS, Matt, Vice Chair
AGBAJE, Esther
ANDERSON, Patti
BRAND, Jeff
ELKINS, Steve
HOWARD, Michael
JOY, Jim
KOZNICK, Jon
LEE, Liz
LISLEGARD, Dave
OLSON, Bjorn
OLSON, Liz
PINTO, Dave
ROBBINS, Kristin
SMITH, Andy
SWEDZINSKI, Chris
WIENER, Mike
WITTE, Jeff
YOUAKIM, Cheryl

Members excused:
DAVIDS, Greg, Minority Lead

A quorum was present.

Vice Chair Norris moved the minutes of February 21, 2023. THE MOTION PREVAILED.

HF1938 (Gomez) Individual income and corporate franchise taxes, sales and use taxes, property taxes, local government aids, and other miscellaneous taxes and tax provisions modified; income tax additions, subtractions, and credits modified; taxes on capital gains modified; child tax credit proposed; advance on payment and one-time refundable tax credit proposed; cannabis-related sales and use tax provisions modified; sales tax exemption for entities proposed; eligibility for property tax programs modified; formula modified and definitions for calculation of local government aids added; new forms of local government aids proposed; and money appropriated.

Chair Gomez moved that HF1938 be laid over for possible inclusion in the Taxes Omnibus bill.

Chair Gomez moved the A23-0027 amendment. THE MOTION PREVAILED. THE AMENDMENT WAS ADOPED.

Chair Gomez presented HF1938, as amended.

Presentation from the Minnesota Department of Revenue on HF1938, as amended.

Testifying on HF1938, as amended:
• Paul Marquart, Commissioner, Minnesota Department of Revenue
• Brad Lehto, Secretary-Treasurer, Minnesota American Federation of Labor and Congress of Industrial Organizations (AFL-CIO)
• Phillip Cryan, Executive Vice President, Service Employees International Union (SEIU) Healthcare Minnesota
• Jessica Webster, Staff Attorney, Legal Aid
• Debra Fitzpatrick, Policy and Research Director, Children’s Defense Fund-Minnesota
• Nathan Jesson, Intergovernmental Relations Representative, League of Minnesota Cities
• Nan Madden, Director, Minnesota Budget Project
• Matt Massman, Executive Director, Minnesota Inter-County Association
• Mark Haveman, Executive Director, Minnesota Center for Fiscal Excellence
• Kelly Wilson, President, Education Minnesota-Osseo
• Asad Zaman, Executive Director, Muslim American Society of Minnesota
• Beth Kadoun, Vice President, Tax and Fiscal Policy, Minnesota Chamber of Commerce
• Aurora Vautrin, Legislative and Political Director, 100% Campaign
• Ethan Vogel, Legislative Director, American Federation of State, County and Municipal Employees (AFSCME) Council 5
• Ben Baglio, Government Relations Specialist, Minnesota Nurses Association
• Matt Hilgart, Government Relations Manager, Association of Minnesota Counties
Vice Chair Norris renewed the motion that HF1938 be laid over for possible inclusion in the Taxes Omnibus bill. The bill was laid over.

The meeting adjourned at 2:30 PM.

____________________________________
Representative Aisha-Gomez, Chair

_____________________________________
Lauren Sabes, Committee Legislative Assistant

More Info On This Meeting..

Bills Added:

HF1938 (Gomez) - Tax finance and policy bill.

Documents:

1) Taxes Agenda 2.28.23.pdf - 2/27/2023
2) 2.21.2023 Taxes Sixteenth Meeting Minutes.pdf - 2/27/2023
3) 2023 Governor's Bill Summary 2.23.23.pdf - 2/27/2023
4) A23-0027 (Gomez) Authors Amendment.pdf - 2/27/2023
5) H1938A1 (Robbins).pdf - 2/27/2023
6) H1938A2 (Robbins).pdf - 2/27/2023
7) Governor's Tax Bill Presentation 2.28.pdf - 2/27/2023
8) HF1938 Spreadsheet.pdf - 2/27/2023
9) HF938 Revenue Estimate 1.pdf - 2/27/2023
12) Governors Tax Bill Change Pages.pdf - 2/27/2023
13) Gov Tax Bill Change Page SWCD.pdf - 2/27/2023
14) DoR Example household benefit handout.pdf - 2/27/2023
15) 100% Campaign HF1938 Letter.pdf - 2/27/2023
16) NFIB MN HF1938 Letter.pdf - 2/27/2023
17) HF1938 Localities Letter.pdf - 2/27/2023
18) MASWCD HF1938 Letter.pdf - 2/27/2023
19) MN Chamber, United for Jobs HF1938 Capital Gains handout.pdf - 2/27/2023
20) MN Council on Latino Affairs HF1938 Letter.pdf - 2/27/2023
21) MN Realtors HF1938 Written Testimony.pdf - 2/27/2023
22) HF1938 Coalition ITIN Letter.pdf - 2/27/2023
23) HF1938 CTC Coalition Letter.pdf - 2/27/2023
24) HF1938 SWCD Letter.pdf - 2/27/2023
25) Together We Rise HF1938 Letter SS.pdf - 2/27/2023
26) MN Budget Project Fact Sheet on SS.pdf - 2/27/2023
27) WFM CTC.DCTC HF1938 Letter.pdf - 2/27/2023
28) HF1938 Bill Language.pdf - 2/27/2023
10) HF1938 Revenue Estimate_2.pdf - 2/28/2023
29) HF1938 Coalition SS Letter.pdf - 2/28/2023

Audio:
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House TV Video:
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00:48 - HF1938 (Gomez) Governor’s tax bill.
Runs 1 hour, 24 minutes.

Show Full Schedule Agenda:

HF1938 (Gomez) Individual income and corporate franchise taxes, sales and use taxes, property taxes, local government aids, and other miscellaneous taxes and tax provisions modified; income tax additions, subtractions, and credits modified; taxes on capital gains modified; child tax credit proposed; advance on payment and one-time refundable tax credit proposed; cannabis-related sales and use tax provisions modified; sales tax exemption for entities proposed; eligibility for property tax programs modified; formula modified and definitions for calculation of local government aids added; new forms of local government aids proposed; and money appropriated.

Materials will be posted to the Committee website when they are available. Public testifiers should email their full name, organization (if applicable) and preferred title to the Committee Administrator (Patrick.McQuillan@house.mn.gov) by 5 PM on Monday, February 27th. Testimony will be limited to two minutes per testifier. Materials to be distributed to the Committee members are also due by 5 PM on Monday, February 27th to the Committee Administrator and the Committee Legislative Assistant Lauren Sabes (Lauren.Sabes@house.mn.gov). Please note: submitted written testimony is public and will be included in the official committee record. It may be posted to the committee webpage if received by deadline.

To learn more about requesting an accommodation, please visit the FAQs for Disability Access. If you have further questions on accommodations or accessibility, please contact the Committee Administrator.