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House passes tax conformity legislation

ST. PAUL — The Minnesota House on Monday unanimously passed legislation allowing state taxpayers to take advantage of numerous tax provisions already approved at the federal level.

The bill introduced by Rep. Aisha Gomez, DFL-Minneapolis, brings the State’s tax code into conformity with federal tax law on 46 provisions that have been signed into law by U.S. presidents since 2019. According to the state Revenue Department, the changes need be signed into law by Friday for the department to make the appropriate changes on state tax forms in time for filing. The Senate is scheduled to consider an almost identical bill on Wednesday.

State Rep. Chris Swedzinski, R-Ghent, said federal conformity is needed in Minnesota to ease filing compliance burdens and to help industries that were hardest hit from pandemic shutdowns — especially restaurant, hospitality, and entertainment industries.

“This bill will help update our tax code to help out both our tax preparers and also our tax filers,” Swedzinski said. “We’re hoping to actually do a lot more on taxes this year. We’re working hard on getting the social security fixes done so that people aren’t taxed on their Social Security benefits, among a lot of other things. If we can take care of that, here in January, that would help a lot of people as we enter tax season.”

Swedzinski said at least seven federal bills have been passed into law since Minnesota last enacted legislation to match congressional changes. Tax year 2023 marks five years since our state tax code has been conformed, which Swedzinski said is the longest the state has been out of conformity in decades.

Language the House passed Monday indicates taxpayers have until Dec. 31 to file an amended return.

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