Walz signs first bill of 2023 session, conforming MN tax code to federal changes

Governor Tim Walz this afternoon (Thurs) signed the first bill of the 2023 session passed by the legislature — bringing Minnesota into line with new federal tax laws (called “tax conformity”), which he says will make tax filing easier and provide tax cuts to students and businesses.  The governor acknowledges that at some point he’ll be talking about bills he doesn’t like — but this time…

“What’s different about this, it appears to me like there’s a very concerted effort to try and find some common ground where we can, to try and make sure we serve Minnesotans.  So this one feels good to me.”

Among numerous provisions in the new tax law:  Student loan forgiveness will be exempt from state taxes and certain businesses that received pandemic aid will be eligible for tax exemptions.  Republicans say Democrats refused to reduce personal income tax rates or eliminate state income tax on Social Security benefits.  Democrats have talked about possibly reducing taxes on Social Security,  but not until later in the session.