Local Tax Issues

MN Legislature Set to Solidify Tax Relief Plans Next Week

MN Legislature Set to Solidify Tax Relief Plans Next Week

The Minnesota legislature is set to solidify state tax relief plans for residents next week, according to lawmakers. 

The state assembly is set to take a brief break for the Easter holiday before resuming on Monday, April 10. A new report notes that House Speaker Melissa Hortman (D-District 34B) anticipates that the legislature's final tax bill will include one-time rebate checks, elimination of Social Security tax for select Minnesotans, and some new tax credits.

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Credit: Benkrut/Getty Images

Speaking to MPR News, Hortman said, “There's a desire to make it simpler and more straightforward. There's a desire to exempt more individuals from paying any tax on their Social Security income. There is not a desire to say no matter how much you make, if some of your income is from Social Security, we're going to exempt that from taxation completely."

It is worth noting that the existing Social Security tax brings in about $60 million annually, so state Republicans and some Democrats are concerned about nixing the tax altogehter.

Hortman, a member of the Democratic–Farmer–Labor Party, seemed optimistic that a compromise could be reached.

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Credit: Getty Images

As for one-time tax rebate checks, Hortman indicated that there is bipartisan support for a credit, specifically for families with young children. She stated that leaders from both major parties have had conversations with the Minnesota Department of Revenue.

Governor Tim Walz (D) also supports these one-time checks, recently suggesting a proposal that would send up to $2,000 to married couples who make under $150,000 and $1,000 to single filers who earn less than $75,000 per year. 

Eligible recipients could get an additional $200 apiece for up to three dependents. 

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Credit: Getty Images

Another key tax issue the legislature will be addressing next week relates to new taxes on food delivery and rideshare services like Uber and Lyft. 

MinnPost shared that these fees would go toward maintaining roads and infrastructure throughout the state. Democratic-Farmer-Labor Representative Erin Koegel said, “Nobody is excited about raising fees and taxes. We don't like it. But we also don't like seeing the, you know, a Titanic-sized pothole out in front of the State Office Building.”

What do you think about the proposed changes to state taxes in Minnesota?

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Rebekah Barton

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