ST. PAUL – The Minnesota House on Monday overwhelmingly passed legislation allowing state taxpayers to take advantage of numerous tax provisions already approved at the federal level.
House Republican Leader Rep. Lisa Demuth, R-Cold Spring, said federal conformity is needed in Minnesota to ease filing compliance burdens and to help industries that were hardest hit from pandemic shutdowns – especially restaurant, hospitality, and entertainment industries.
“It has been five years since our tax code has been conformed – the longest we have been out of conformity in decades,” Demuth said. “This has caused an unnecessary and avoidable burden for Minnesotans, including some of those hardest hit by pandemic shutdowns. In some cases, Minnesota was the only state in the nation still taxing certain grants. There’s no reason the state of Minnesota should be profiting from money meant to help individuals and businesses in need. I’m glad we could kick off the legislative session getting this done for Minnesotans.”
Demuth said at least seven federal bills have been passed into law since Minnesota last enacted legislation to match congressional changes back in 2019. Language the House passed Monday specifies taxpayers have until Dec. 31 to file an amended return.
State officials indicate approving the bill (H.F. 31) by Jan. 13 allows tax software to be updated in time for the 2023 filing season. With 132-0 passage in the House, the bill is now in the hands of the Senate and, pending that body’s approval, will be presented to the governor for enactment.
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