SAINT PAUL, Minn. – Minnesota’s unified state government has passed its first major legislation into law. Governor Walz signed a federal tax conformity bill, HF 31, which was passed quickly by the Minnesota Legislature on broad bipartisan and unanimous votes. The measure 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. Rep. Ginny Klevorn (DFL-Plymouth), who serves as the House State and Local Government Finance and Policy Committee chair, voted to pass the legislation to send to the governor.
“We've hit the ground running and I'm pleased we’ve advanced this legislation to help us enhance tax filing transparency and ease for our Plymouth and Medicine Lake residents,” said Rep. Klevorn. “When we work together as a unified team for Minnesota, we can do great things for individuals, families, and businesses.”
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.
Among the many provisions in the bill is one that would ensure that forgiven student loans are not taxable as income. Should President Biden’s student loan forgiveness go into effect, this will guarantee Minnesotans with student loans receive the full benefit.
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.
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