ST. PAUL – By a vote of 129 to 0, a bill authored by State Representative Greg Davids (R-Preston) that conforms state tax rates to that of the federal government has been approved in the Minnesota House.
“This is a bill that will make lives easier for the majority of Minnesotans through needed tax relief,” Davids said. “We could not afford a delay on tax conformity, and I'm pleased we moved this legislation along at warp speed."
Without quick approval of Davids’ federal tax conformity bill, Minnesotans who file their income taxes early with the IRS could be forced to file amended returns, a situation all lawmakers want to avoid. Davids was told by the Department of Revenue that it would be ideal if the bill could be approved by the Legislature and signed into law before January 20.
Some of the provisions in Davids’ tax conformity bill include tax credits for higher education expenses, teacher reimbursement expenses, and a provision that prevents housing debt relief from being recognized as income and therefore taxed.
Davids’ bill also better clarifies last session’s Destination Medical Center (DMC) law. It corrects language that requires $12 billion in private investment before state aid could be utilized, and allows DMC development expenses made by the City of Rochester to be included as part of its required $128 million match.
“With DMC the goal is to clarify, but not change, the current policy,” Davids said. “I’m very pleased both of these provisions received unanimous support and I’m confident this legislation will become law very soon.”