Skip to main content Skip to office menu Skip to footer
Minnesota Legislature

Tax conformity report passes House despite governor’s warning

Rep. Greg Davids speaks in support of the conference committee report on HF4385, the tax conformity bill, on the House floor Tuesday. Photo by Andrew VonBank

With five days left in the legislative session, the House cleared one of the biggest hurdles it had heading into 2018: conforming Minnesota’s tax code to the recent overhaul in Washington, D.C.

On Tuesday, the House suspended its rules and passed the conference committee report on HF4385 by a 78-50 vote, sending the measure to the Senate, which is expected to take up the measure Wednesday.

Gov. Mark Dayton, a DFLer, said Monday he wouldn’t sign the bill unless the Republican-controlled Legislature approved emergency funding for schools, a proposal the governor offered on May 1 – 19 days before lawmakers are constitutionally required to finish their jobs.

Mentioning the conference committee took out items the governor didn’t like during negotiations, Rep. Greg Davids (R-Preston), the bill sponsor, said, “This is a bill clearly that the governor could sign and should sign. … This is a great bill. It is a masterpiece, as you’ve heard.”

The agreement calls for first-tier tax rate to drop from 5.35 percent to 5.3 percent in tax years 2018 and 2019 and 5.25 percent beginning in tax year 2020. The second-tier tax rate would drop from the current 7.05 percent to 6.95 percent in tax years 2018 and 2019 and 6.85 percent beginning in tax year 2020.

The changes would result in a $137.1 million revenue decrease this biennium and $341.1 million in the next.

Davids claims 99.8 percent of Minnesotans would see tax reductions or be “held harmless” by the changes.

Rep. Jim Davnie (DFL-Mpls) pitted the bill as a break for corporations on the backs of Minnesota’s education system. He wasn’t alone.

“Unfortunately, this bill went in the wrong direction,” said Rep. Paul Marquart (DFL-Dilworth), who voted for the bill the first time but voted against it on Tuesday. “We have to create a win for our working families, and this bill simply doesn’t do that.”

Rep. Gene Pelowski Jr. (DFL-Winona), Rep. Mike Sundin (DFL-Esko) and Rep. Mary Murphy (DFL-Hermantown) joined the Republican majority in voting for the bill. 


Related Articles


Priority Dailies

Rep. Diane Loeffler passes away
Rep. Diane Loeffler (DFL-Mpls) passed away Saturday. An email from House Speaker Melissa Hortman (DFL-Brooklyn Park), said that Loeffler, serving her eighth term in the...
State Fair poll shows steady support for gun sale background checks, recreational marijuana
Support for criminal background checks on all gun sales and the legalization of marijuana for recreational use appears to have remained steady among Minnesotans during the past 12 months.
Governor signs special session budget bills into law
One week after a marathon special session that saw lawmakers pass most of the major budget bills needed to fund the state’s government over the next two years, Gov. Tim Walz signed the legislation into law.
After sunrise, the sun sets on 2019 special session
It took a grueling special session that stretched past sunrise, but Minnesota lawmakers completed their work early Saturday morning on passing a new two-year state budget.

Minnesota House on Twitter