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Tax Law Changes and what's to come

Thursday, February 8, 2018

Tax Law changes and what’s to come

During the 2017 Legislative Session we passed the first meaningful tax relief for Minnesotans in nearly two decades.  My House colleagues and I worked hard to deliver significant tax relief and ultimately passed into law $650 million in tax relief for Minnesota families over the next two years, and $790 million in 2020-2021. Specific relief includes:

  • Nearly 284,000 senior citizen tax returns (single and married filing jointly) will receive tax reductions; 72,000 of those will no longer pay state income tax on their social security benefits.
  • A family of four making $50,000 a year will receive an additional $1,200 toward their child care expenses.
  • 65,000 students will receive an average of a $414 reduction in their taxes through a new tax credit for student loan payments.
  • Every Minnesota business owner will see relief from an “extra” business tax.

The Tax Cut and Jobs Act of 2017 passed by Congress and enacted into law have resulted in major, and long overdue, changes to the U.S. Tax Code. We are already seeing results as dozens of companies, including many here in Minnesota like Best Buy, Data Sales Company, and TCF Bank, have announced significant bonuses for their employees. This is on top of the increase Minnesotans are already seeing with the decrease in taxes owed.

However, tax reform at the federal level is only one aspect of the taxes we pay. In Minnesota, that means we must pass a tax conformity bill this legislative session to address all the changes filers will see when filing their 2018 taxes.

Part of what we must do this upcoming session is work to make sure Minnesotans do not experience tax increases due to changes required to comply with the federal reform. I will work to make certain the hard-working people of Shakopee do not see their tax bill rise due to changes made to comply with the federal changes.

For a complete list of the tax changes enacted by the Legislature during the 2017 Session, you can visit the Minnesota Management and Budget website here: http://www.revenue.state.mn.us/Pages/law_changes.aspx

If you have any comments or questions about the upcoming session or anything else going on at the legislature, please reach out to my office at (651) 296-8872. You can also reach me via email at rep.bob.loonan@house.mn.

  • Rep. Bob Loonan, R – Shakopee

House District 55A