The Senate today passed a tax conformity bill, bringing Minnesota in line with recent federal tax changes and cutting tax collections by more than $100 million, said Senator Andrew Mathews (R-Princeton). The bill was passed with bipartisan support and is headed to the governor’s desk for his signature.  

“The Senate’s passage of the tax conformity bill is a bipartisan victory that will help many Minnesotans who urgently need financial relief,” Senator Mathews said. “However, I am severely disappointed to see our seniors left out of this legislation. When Senate Republicans brought forward an amendment to fully eliminate the tax on Social Security, Democrats refused to move it. As session advances, I will continue to fight for our state’s enormous $17.6 billion surplus to be given back to taxpayers.”

The bill aligns the Minnesota tax code with Federal tax changes that resulted in many tax changes, including: The Coronavirus Aid, Relief, and Economic Security (CARES) Act from 2020, The American Rescue Plan (ARPA) Act from 2021, and The Inflation Reduction Act (IRA) from 2022. 

Notable provisions in the bill:  

• Expand eligible expenses to college savings accounts through Section 529 plans 
• Exclude shuttered venue operator grants from being counted as income 
• Allows for student loan payments by employers 
• Increases the amount a business can provide for employee child care benefits 

Missing from the bill is the elimination of the tax on Social Security, or any reduction in personal tax rates. Senate Republicans tried to amend these changes to the bill, but Democrats opposed the move through parliamentary procedure.