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 Paul Torkelson (R-Hanska) voted in favor of the legislation.
“This was a good example of both sides working together to help the people of Minnesota,” Torkelson said. “Improvements were made in committee to eliminate all proposed tax increases, and because that happened the bill was approved with unanimous support.”
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. Torkelson said the proposal includes several provisions that provide positive changes for both individuals and businesses. Without state tax conformity, Torkelson said Minnesotans cannot take advantage of federal tax reduction provisions.
Torkelson said Republican members of the Minnesota House Taxes Committee successfully blocked nearly $100 million in proposed Democrat tax hikes before the final bill was sent to the floor for a full debate. He added that it has been five years since Minnesota’s tax code has been conformed.