Dear Neighbor,
We’re wrapping up the second week of the 2023 session and the most notable thing to happen in recent days is the House’s 132-0 passage of “tax conformity” legislation. By name, it sounds dry as can be, but it’s actually a good thing because it eliminates headaches during filing and allows state taxpayers to take advantage of numerous tax provisions already approved at the federal level.
Mainly, federal conformity is needed in Minnesota to ease tax filing and to help industries that were hardest hit from pandemic shutdowns – especially restaurant, hospitality, and entertainment entities. At least seven federal bills have been passed into law since Minnesota last enacted legislation to match congressional changes. Tax year 2023 marks five years since our state tax code has been conformed, which is the longest the state has been out of conformity in decades.
It was good to see strong, bipartisan support in the House for this common-sense bill. It was necessary we act early this session so all tax filers in Minnesota have the tax benefits from changes at the federal level before the start of this year’s tax season. Taking care of this issue now will make thing easier for everyone in the upcoming tax season.
The Senate followed suit by passing the bill on Wednesday and the governor enacted it Thursday. Language in the bill specifies taxpayers have until Dec. 31 to file an amended return.
While the House’s bipartisan spirit was on display while passing the tax conformity bill, a change in tone is likely to occur when the Democrat majority starts bringing more controversial bills to the floor. They have a bunch of those moving through the committee process, with extreme proposals related to abortion, firearms, energy, driver’s licenses and more among the first bills House Democrats introduced.
A radical bill regarding abortion could be the first of the more divisive subjects to come to the House floor – the bill is even labelled House File 1, after all. We can take a closer look at this bill soon, but it’s so extreme Democrats even blocked an amendment Republicans offered to clarify the fundamental right to abortion does not include partial birth or third trimester abortions unless it falls under one of the exceptions (life/health of the mother, incest or rape).
Meanwhile, other important issues Minnesotans care about most are taking a back seat. What is the majority’s plan for providing tax relief with the state’s $18 billion surplus? How does the majority propose curbing violent crime in our state which spiked a couple years ago and remains abnormally high?
Watch for more on these and other important subjects soon as things develop at the Capitol. Meanwhile, please stay in touch and let me know how I can help.
Sincerely,
Matt