Walz to sign bill aligning MN tax laws to federal changes

Governor Tim Walz this afternoon (3pm) signs the first bill of the 2023 session passed by the legislature — bringing Minnesota into line with new federal tax laws (called “tax conformity”).

Both parties agree it will result in over 100 million dollars in tax savings for Minnesotans.  Democrats spotlight student loan debt, pandemic-affected businesses and filers with charitable contributions.  Republicans emphasize expanding eligible expenses to college savings accounts and increasing the amount a business can provide for employee child care.  But Senate Republican Minority Leader Mark Johnson says 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.