Saint Paul, MN. – Today, the Minnesota House of Representatives passed HF 5247, the 2024 House Supplemental Tax Budget Bill. The bill builds off of last year's historic tax bill — the largest tax cut in state history which delivered credits, rebates, and other provisions designed to maximize benefits for workers, families, and seniors — to continue to improve financial outcomes for working and middle-class Minnesotans.
“The Taxes Committee worked this year to craft a Tax Bill which is receptive to the needs of Minnesotans while building off of our groundbreaking work from last session,” said Rep. Aisha Gomez (DFL - Minneapolis), Chair of the House Taxes Committee. “We have a very strong bill here which will make Minnesota a better and more equitable state.”
The legislation expands Minnesota’s nation-leading Child Tax Credit in two significant ways. First, it expands its full coverage to 18-year-olds. More children are living at home for longer with a recent survey by Bloomberg showing that nearly half of people aged 18 to 29 are still living at home with their parents. This expansion is a recognition of the economic reality many Minnesotan families face, that poverty doesn’t end when a child turns 18. This expansion will ensure more families are able to make ends meet and support their children.
The second expansion is the rollout of a CTC advanced payment pilot project with minimum payments. Instead of one lump sum payment, which can be difficult to budget for, the pilot project will help spread the impact across the year – helping families afford meals, rent, and other basic items at the time they’re needed. The pilot will lead to a greater understanding of the efficacy of this program while making the credit funds go further.
The 2024 Tax Bill takes action to prioritize taxpayers over predatory tax software companies with the implementation of a free direct file option for Minnesota income taxes. This means that Minnesotans won’t have to navigate confusing and expensive tax services on top of an already difficult process. This provision only applies to Minnesota returns and does not cover federal returns
Finally, the 2024 House Tax Bill contains a robust set of policy changes, local tax provisions, and innovative programs that will make the Minnesota tax code more responsive to the needs of Minnesotans everywhere. Some impactful provisions include corporate tax disclosure, coerced debt income subtraction, land value tax option for cities, and reform of local sales tax statutes.
Video of the floor debate will be uploaded to the House Information Youtube page.
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