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.
State Rep. Harry Niska, R-Ramsey, 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. Niska personally co-authored a key provision in the bill which spares venues the state shuttered during the pandemic from paying taxes on relief grants.
“It was overdue and necessary to align our state’s tax code with changes at the federal level so state taxpayers are able to benefit from changes that have been made in recent years,” Niska said. “Taking care of this now will allow Minnesotans to better prepare for 2023 tax filings. I am pleased we were able to protect shuttered venues from suffering an unjust tax.”
Niska said 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 Niska said is the longest the state has been out of conformity in decades.
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. Language the House passed Monday specifies taxpayers have until Dec. 31 to file an amended return.
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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