SAINT PAUL, Minn. – On Tuesday, the Minnesota House acted quickly to pass an early federal tax conformity bill, HF 31 on a broad bipartisan vote of 132-0. The legislation will make several changes to bring Minnesota into conformity with federal tax law, resulting in over $100 million in tax cuts to a wide range of Minnesotans, while simplifying future tax filings. Newly sworn-in Rep. Lucy Rehm (DFL-Chanhassen) voted in favor of the legislation.
“The measure we voted on today will update Minnesota’s tax code and help simplify filing for Minnesotans, their families, and our small businesses,” said Rep. Rehm. “We’re working hard and advancing bills to keep our Chanhassen and Chaska communities moving forward; this is what good governance looks like.”
Since the COVID-19 pandemic began in 2020, there have been a number of federal aid initiatives enacted to help Americans, many of which would be treated as taxable income without passing this state legislation to conform to federal tax changes. Some of these initiatives included the Coronavirus, Aid, Relief and Security Act, the American Rescue Plan, the Families First Coronavirus Response Act and the Inflation Reduction Act of 2022, which would impact several Minnesotans who relied on this relief at a time when it was needed most.
By passing this bill within the first two weeks of session, the Department of Revenue will be able to incorporate these measures in time for this year’s tax filing season. This will greatly reduce the administrative burden on individuals and businesses this tax season.
You can view the presentation and floor debate on this bill on the House YouTube page. The Minnesota Senate has passed their version of the bill and it will now go to Governor Walz for his signature.
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