Yesterday the Senate voted on a tax corrections bill meant to repair mistakes from the rushed 2023 session that resulted in nearly $365 million in tax increases. The bill addresses changes for individual tax rates but leaves out corrections for small businesses and entrepreneurs.

The bill also failed to include a “fix” for taxes now implemented on rebate checks. Last year, Minnesotans were sent a $260 rebate check. Those same taxpayers are now being forced to pay federal taxes on those checks because the legislature failed to pass a tax bill before the end of the federal disaster declaration.

In an effort to offset the federal taxes that will be paid, Senator Karin Housley (R-Stillwater) proposed an amendment that would have provided a one-time credit to Minnesotans who received the rebates.

“Though I’m glad this bill was brought forward to provide a number of fixes that were necessary, one big point was not included: addressing the fact that Minnesotans are paying taxes on rebate checks because Democrats dragged their feet on a tax bill,” said Housley. “Mistakes happen, but we had an important opportunity to provide a one-time credit to correct the mistake, yet every Senate Democrat voted against this amendment. Families have been asking for relief, and we could have provided that. Instead, they will be paying an unexpected tax on a check that should never have been taxable. I’m disappointed we couldn’t come together to get this done for Minnesotans.”

The bill passed, but the amendment failed on a party-line vote.