Friends and Neighbors,
Last Friday, the legislature passed a $443 million tax package that was signed into law. Here is a breakdown of what happened in the tax bill and what it means for you:
Repeal of Business-to-Business Taxes
During the 2013 session, a tax bill was passed that raised $2.1 billion in taxes and created three new business-to-business taxes on warehousing services, telecommunications equipment, and commercial and farm equipment repairs.
Although repeal of these taxes is a good step, the final tax bill this year did not include a retroactive repeal of business-to-business sales taxes which would have returned an additional $55.9 million back to employers.
Federal Conformity
Here are some important federal conformity provisions in the tax bill:
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Qualified tuition and related education expenses
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Loan forgiveness from income taxes
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Employer paid adoption assistance
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Employer paid education assistance
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Student loan interest deductions
It is unfortunate that the increased Standard Deduction for married joint filers was not included in the tax bill for 2013—this does not help most working families in Woodbury.
Filing your 2013 Taxes
For those who have not yet filed, the Department of Revenue is asking you to wait until April 3rd to make sure that their programs are up to date when you file your returns.
If you have already filed and are eligible for more deductions, the MN Department of Revenue will do one of three things:
1. Fix the return and send a letter explaining what was fixed.
2. Request more information from the taxpayer so that they can fix the return.
3. Notify taxpayers that they can't fix their return. If this happens, the taxpayer will need to file an amended return.
The Department of Revenue is saying it may take a few months to catch up and comb through everyone’s returns who have already filed, but the agency will take care of it, and you will not have to contact them further unless prompted to do so.
Survey
Please take my 2014 survey here.
Your opinions are important to me and your input is very valuable. Thank you to those who have already responded.
As always, I am honored to serve you in St. Paul. If I can ever assist you on a matter of state government, please do not hesitate to contact me.
Respectfully,
Rep. Andrea Kieffer, Woodbury
651-296-1147
Rep.Andrea.Kieffer@house.mn