ST. PAUL – How should Minnesota lawmakers handle federal tax conformity?
With the 2018 legislative session now underway, it’s a question State Representative Greg Davids (R-Preston) said will be strongly debated in the coming weeks.
“This isn’t the traditional tax conformity plan we spend 20 minutes debating on the House floor and then send it to the Senate,” said Davids, who chairs the powerful Minnesota House Taxes Committee. “This is going to have significant impacts on our state, and it is critical that we reach consensus on this before we adjourn for the year.”
Davids said taxpayers won't feel the impacts of the proposal until 2019, but action is needed before Minnesotans file their taxes next year.
Conforming to the federal tax code would cause Minnesota to experience an increase in tax revenue, so lawmakers will need to take steps to ensure this increased tax revenue is returned to taxpayers to prevent widespread tax increases.
“We’ll need to figure out the best ways to get this money back in the hands of hardworking Minnesotans,” Davids said. “Everyone is going to have an idea of what to do with this revenue, and the taxes committee will need to sort through them all and come up with the most reasonable solutions.”
In addition, Davids said he will continue his quest to secure state funds to build a veterans’ home in Fillmore County, as well as bonding proceeds for the Chatfield Center for the Arts and several area trails.
As session moves forward, Rep. Davids encourages residents to contact him with any legislative thoughts or concerns. He can be reached by phone at 651-296-9278 or by email at email@example.com.