Tax fix gets members stirred up

Heads butted during two House Taxes Committee hearings over a bill that would retroactively correct a mistake.

Sponsored by Rep. Ann Lenczewski (DFL-Bloomington), HF95 makes changes to the 2008 tax law as specified in a letter sent by House and Senate leadership to the governor after the Legislature adjourned last May. The leaders agreed to the change so the legislation would not get a governor’s veto.

The bill was approved by the committee Jan 21, and by the House Ways and Means Committee on Jan. 22. It now awaits action on the House floor.

The bill replaces two employer credits intended to encourage employers to provide section 125 plans for health care and to credit certain individuals participating in those plans. It also would repeal a provision that suspends all state maintenance of effort and matching fund requirements for counties while levy limits are in effect.

“I have a problem with leadership binding us to votes,” said Rep. Tina Liebling (DFL-Rochester) during the Jan. 20 hearing. Rep. Tom Rukavina (DFL-Virginia) also spoke in support of members having a say.

Discussion on the bill continued the next day when Rep. Greg Davids (R-Preston) tried to shift the scope of the bill through an amendment focused only on the county funding requirements.

Although the amendment failed, it prompted comments from several testifiers about county funding mandates and the need for change.

Lenczewski said the topic would likely be revisited throughout session.

A companion bill, SF49, sponsored by Sen. Tom Bakk (DFL-Cook), was heard Jan. 22 by the Senate Taxes Committee.