Legislative Update
This week was busy with many visitors who stopped by to share goals and concerns for this legislative session. Visits included the Sugar Beet Growers Association, the Minnesota Soybean Growers Association, and EMS (Emergency Medical Services). Wednesday was MN Sheriff Association Day. During the house floor session, last year’s tax bill was addressed.
Partial Fix of Tax Bill
Many Minnesotans likely will see their income-tax returns improve due to legislation the House passed this week – while some taxpayers were ignored. Here’s more: Last session, the Democrat-led legislature approved comprehensive tax legislation that reduced standard income tax deductions, leading to tax increases for roughly 76 percent of Minnesotans.
In particular, the bill correctly inflates the statutory amounts for the standard deduction, additional standard deduction for seniors and blind taxpayers, and standard deduction amounts for dependents. Without this correction, the Department of Revenue estimates that an additional $352 million in general fund tax revenue would be raised starting in tax year 2024.
Meanwhile, the bill did not include agreed-upon language that would provide a technical fix to the Net Operating Loss (NOL) provision. This provision reduced the NOL deduction from 80 percent to 70 percent of taxable income for corporations. The legislative intent was to make this provision effective for tax year 2024. However, the 2023 Tax Bill contained an effective date of tax year 2023.
The House and Senate tax chairs co-signed a letter to state revenue officials last June, promising to fix this problem at their earliest convenience but then did not follow through when they had their chance. If the NOL error is not fixed, tax year 2023 filers will be liable for additional tax revenue with a general fund revenue gain of an estimated $14.8 million.
The common thread in all of this is the one-party majority rushed legislation last session and made mistakes. I’m happy to support the bill we approved because it prevents Minnesota taxpayers from suffering $350 million in damages but, to be clear, this was a partial fix. The $15 million NOL error is still a big deal and, as of now, taxpayers are going to have to pay for it.
The bill as written advanced to the Senate after passing the House.
Agriculture at the Capitol
This week we celebrated Ag Week, with farmers visiting the Capitol to talk about the importance of agriculture in our state. I had great visits with farmers who grow sugar beets, corn, and soybeans. We discussed the importance of agriculture to our state along with legislation that may affect our way of life. The cost of production continues to rise. We need to work together to protect our crop inputs and prevent unnecessary restrictions that are placed on farmers.
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Emergency Medical Servies (EMS)
EMS in Minnesota continues to face critical challenges to delivering services across the state. Severe reimbursement shortfalls, aging workforces, and increased operating costs are forcing communities to make tough decisions. This crisis will have life-threatening consequences for families and our communities. We need to work together to find a solution to this situation as EMS is important in our rural communities.
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MN Sheriffs Association Day
Law enforcement is vitally important to all of us. This includes everyone who works every day to keep our communities safe. During an emergency, they answer our 911 calls, work with fire departments and EMS in a time of crisis and maintain order in our jails. It also includes everyone who works behind the scenes maintaining records and the work of our County Attorney’s. Thank you to everyone in our district for the jobs you do. What happened in Burnsville is a tragedy. Please take a moment to remember those who have lost their lives in the line of duty.
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It was an honor to visit with the Sheriffs of Sibley County and Carver County. We talked about issues that are important to law enforcement in our area.
Thank you to all who visited this week, and I hope to see many more constituents as the legislative session continues.
If you have thoughts or concerns with issues coming before the legislature, please don't hesitate to contact me
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