ST. PAUL – In a move that will help residents and business owners save money and avoid headaches at tax time, the Minnesota House has approved legislation that conforms Minnesota’s tax code with that of the federal government.
State Representative Greg Davids (R-Preston) voted in favor of the legislation.
“The federal government has approved a handful of new laws that impact Minnesotans that, to date, they cannot utilize,” Davids said. “Approving tax conformity means they will be able to take full advantage of the federal tax reduction provisions.”
Davids, who is Republican Lead of the powerful Minnesota House Taxes Committee, said Republican members of the committee successfully blocked nearly $100 million in tax hikes before the final bill was sent to the floor for a full debate.
Federal conformity is needed to ease filing compliance burdens and to help industries that were hardest hit from pandemic shutdowns – especially in the restaurant and hospitality sectors. Davids said the proposal includes several provisions that provide positive changes for both individuals and businesses.
Davids said it has been five years since Minnesota’s tax code has been conformed.
The legislation now heads to the Minnesota Senate for its approval.