Tax Conformity Debate Begins in the Senate

The Senate Tax Committee reviewed Governor Mark Dayton's tax plan Thursday, April 19, and differing views on ways to conform to the federal tax law changes came to the forefront during the hearing.

Department of Revenue Commissioner Cynthia Bauerly said the governor's plan would provide $319 million dollars in tax relief to Minnesotans. Over 1.9 million families would receive an average tax cut of $117 dollars, she said, while 329,000 families would see a greater tax reduction.

Senate Tax Chair Roger Chamberlain said that there will be places of agreement between the governor and the Senate Republican leadership, including using the Federal Adjusted Gross Income as a starting basis for calculating state income tax. However, Chamberlain said, "It is a bit disingenuous to offer it up as a tax cut and relief for Minnesotans. This is not a tax cut...on the face it is not a tax cut, because the Governor tends to call back tax relief items that Minnesotans were offered last year." He further added that maintaining the provider tax is a tax increase as well.

DFL Tax Lead Senator Ann Rest said, "To the extremely negative federal tax bill on many, many, many individual taxpayers in Minnesota...Governor Dayton is looking out for them."

Passing a tax bill that recognizes the federal tax law changes is one of the chief tasks before legislators as the near the May 21 adjournment date.