Taxes

TWENTY FIRST MEETING

2023-2024 Regular Session - Tuesday, March 14, 2023

STATE OF MINNESOTA TWENTY FIRST MEETING
HOUSE OF REPRESENTATIVES NINETY-THIRD SESSION

TAXES COMMITTEE MINUTES

Representative Aisha Gomez, Chair of the Committee on Taxes, called the meeting to order at 1:02 PM on March 14, 2023 in Room 5 of the State Office Building.

The Committee Legislative Assistant noted the roll.

Members present:
GOMEZ, Aisha, Chair
NORRIS, Matt, Vice Chair
DAVIDS, Greg, Minority Lead
AGBAJE, Esther
ANDERSON, Patti
BRAND, Jeff
ELKINS, Steve
HOWARD, Michael
JOY, Jim
KOZNICK, Jon
LEE, Liz
LISLEGARD, Dave
OLSON, Bjorn
PINTO, Dave
ROBBINS, Kristin
SMITH, Andy
SWEDZINSKI, Chris
WIENER, Mike
WITTE, Jeff
YOUAKIM, Cheryl

Members excused:
OLSON, Liz

A quorum was present.

Vice Chair Norris moved the minutes of March 9, 2023. THE MOTION PREVAILED.

HF300 (Lislegard) Individual income tax provisions modified, and public pension benefit subtraction established.

HF1040 (Hanson) Individual income tax provisions modified, and Social Security benefits subtraction expanded.

Chair Gomez and the committee received public testimony on HF300 and HF1040, as previously presented to the committee on March 9, 2023.

Testifying on HF300 and HF1040:
• Brian Rice, Lobbyist, St. Paul Teachers Pension Fund
• Eric Harris Bernstein, Director, We Make Minnesota
Representative Lislegard moved that HF300 be laid over for possible inclusion in the Taxes Omnibus bill.

Representative Lislegard moved the H0300A1 amendment. THE MOTION PREVAILED. THE AMENDMENT WAS ADOPTED.

Representative Lislegard presented HF300, as amended.

Representative Lislegard renewed the motion that HF300, as amended, be laid over for possible inclusion in the Taxes Omnibus bill. The bill was laid over.

Chair Gomez moved that HF1040 be laid over for possible inclusion in the Taxes Omnibus bill.

Chair Gomez moved the H1040DE1 amendment. THE MOTION PREVAILED. THE AMENDMENT WAS ADOPTED.

Representative Hanson presented HF1040, as amended.

Chair Gomez renewed the motion that HF1040, as amended, be laid over for possible inclusion in the Taxes Omnibus tax bill. The bill was laid over.

HF2581 (Gomez) Income, estate, and property tax refunds; Internal Revenue Code incorporated, as amended through March 1, 2023.

Chair Gomez moved that HF2581 be laid over for possible inclusion in the Taxes Omnibus bill.

Chair Gomez presented HF2581.

Testifying on HF2581:
• Joanna Bayers, Legislative Director, Minesota Department of Revenue
Chair Gomez renewed the motion that HF2581 be laid over for possible inclusion in the Taxes Omnibus bill. The bill was laid over.

HF1419 (Howard) Local government aid provisions modified, local affordable housing aid program established, and money appropriated.

Representative Howard moved that HF1419 be laid over for possible inclusion in the Taxes Omnibus bill.

Representative Howard moved the H1419A2 amendment. THE MOTION PREVAILED. THE AMENDMENT WAS ADOPTED.

Representative Howard presented HF1419, as amended.

Testifying on HF1419, as amended:
• Mary Thompson, Executive Director, Heartland Lake Development Commission
• Todd Peterson, Community Development Coordinator, City of Roseau
• Laurie Halverson, Commissioner, Dakota County
Representative Howard renewed the motion that HF1419, as amended, be laid over for possible inclusion in the Taxes Omnibus bill. The bill was laid over.

HF2558 (Norris) Liquor taxation; excise tax on prepackaged cocktails reduced.

Vice Chair Norris moved that HF2558 be laid over for possible inclusion in the Taxes Omnibus bill.

Vice Chair Norris presented HF2558.

Testifying on HF2558:
• Joel Carlson, Lobbyist, Minnesota Wine and Spirits Wholesaler Association
• Robert Galligan, Director of Government and Industry Relations, Minnesota Craft Brewers Guild
Vice Chair Norris renewed the motion that HF2558 be laid over for possible inclusion in the Taxes Omnibus bill. The bill was laid over.

The meeting adjourned at 2:33 PM.

____________________________________
Representative Aisha-Gomez, Chair

_____________________________________
Lauren Sabes, Committee Legislative Assistant

More Info On This Meeting..

Bills Added:

HF300 (Lislegard) - Social Security; individual income tax provisions modified, and public pension benefit subtraction established.
HF1040 (Hanson) - Individual income tax provisions modified, and Social Security benefits subtraction expanded.
HF1419 (Howard) - Local government aid provisions modified, local affordable housing aid program established, and money appropriated.
HF2558 (Norris) - Liquor taxation; excise tax on prepackaged cocktails reduced.
HF2581 (Gomez) - Income, estate, and property tax refunds; Internal Revenue Code incorporated, as amended through March 1, 2023.

Documents:

1) Taxes Agenda 3.14.23.pdf - 3/13/2023
2) 3.9.23 Taxes Twentieth Meeting Minutes.pdf - 3/13/2023
3) Referral Memo to Property Tax Division 3.13.23.pdf - 3/13/2023
4) HF0300 Bill Language.pdf - 3/13/2023
5) H0300A1 (Lislegard) Author's Amendment.pdf - 3/13/2023
6) HF0300 House Research Summary.pdf - 3/13/2023
7) HF0300_5 Revenue Estimate SS Full and Public Pension Sub.pdf - 3/13/2023
8) HF300 House Research modeling memo 3-8.pdf - 3/13/2023
9) HF300 AARP House Tax Testimony Social Security Elimination.pdf - 3/13/2023
10) HF1040 Bill Language.pdf - 3/13/2023
11) H1040DE1 (Hanson) Author's Amendment.pdf - 3/13/2023
12) HF1040DE1 House Research Summary.pdf - 3/13/2023
13) H1040DE1 House Research modeling memo 3-8.pdf - 3/13/2023
14) 100% Campaign Letter on HF 300 & 1040.pdf - 3/13/2023
15) CDF-MN on Social Security Exemption.pdf - 3/13/2023
16) Lorrie Ufkin Social Security Tax Testimony.pdf - 3/13/2023
17) Mark Felsheim Social Security Tax Testimony.pdf - 3/13/2023
18) MN-Public-Pension-Plan-Basic-Member-Information-6-30-22.pdf - 3/13/2023
19) Peggy Harri-Hiestand Social Security Tax Testimony.pdf - 3/13/2023
20) Robert Allender Social Security Tax Testimony.pdf - 3/13/2023
21) Together We Rise sign on letter opposing large Social Security tax cuts.pdf - 3/13/2023
22) Unlimited Social Security Exemption fact sheet MN Budget Project.pdf - 3/13/2023
23) MN Center for Fiscal Excellence The Renewed Push to Exempt Social Security.pdf - 3/13/2023
24) Public Pension Subtraction for Basic Plan Members.pdf - 3/13/2023
25) SSA Gov. Pension Offset.pdf - 3/13/2023
26) SSA Windfall Elim. Provision.pdf - 3/13/2023
27) HF1419 Bill Language.pdf - 3/13/2023
28) H1419A2 (Howard) Authors Amendment.pdf - 3/13/2023
29) HF1419 House Research Summary.pdf - 3/13/2023
30) HF1419 House Research City Distributions.pdf - 3/13/2023
31) HF1419 House Research County Distributions.pdf - 3/13/2023
32) HF1419 Revenue Estimate Affordable Housing Aid_pt_1.pdf - 3/13/2023
33) AMC HF1419 Support Letter.pdf - 3/13/2023
34) AMC Handout Affordable Housing Aid.pdf - 3/13/2023
35) Hennepin Letter in Support Local Affordable Housing Aid (HF 1419).pdf - 3/13/2023
36) HF1419_MICA Support_House Tax Committee.pdf - 3/13/2023
37) Metro Cities Letter HF 1419.pdf - 3/13/2023
38) HF1419 MHP Letter.pdf - 3/13/2023
39) HF2581 Bill Language.pdf - 3/13/2023
40) HF2581 Revenue Estimate Federal Update Secure 2pt0 Act.pdf - 3/13/2023
41) HF2558 Bill Language.pdf - 3/13/2023
42) HF2558 House Research Summary.pdf - 3/13/2023
43) HF2558 Revenue Estimate Low-alcohol beverages_1.pdf - 3/13/2023
44) MN_RTD_TaxRate_Gallons_8.5x11 (1).pdf - 3/13/2023
45) MN_RTD_TaxRate_Pennies_8.5x11.pdf - 3/13/2023
46) HF2558 Diageo Support letter.pdf - 3/13/2023
47) MN HF 2558 Opposition Letter - FINAL 3-13-2023.pdf - 3/13/2023
48) HF2558 Minnesota Beer Wholesalers Written Testimony.pdf - 3/13/2023

Audio:
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House TV Video:
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00:35 - Remaining public testimony on HF300 and HF1040.
10:21 - Discussion on HF300 (Lislegard) Individual income tax provisions modified, and public pension benefit subtraction established & HF1040 (Hanson) Individual income tax provisions modified, and Social Security benefits subtraction expanded.
23:42 - Laying over HF300 (Lislegard) Individual income tax provisions modified, and public pension benefit subtraction established.
25:31 - Laying over HF1040 (Hanson) Individual income tax provisions modified, and Social Security benefits subtraction expanded.
27:43 - HF2581 (Gomez) Income, estate, and property tax refunds; Internal Revenue Code incorporated, as amended through March 1, 2023.
42:14 - HF1419 (Howard) Local government aid provisions modified, local affordable housing aid program established, and money appropriated.
1:15:49 - HF2558 (Norris) Liquor taxation; excise tax on prepackaged cocktails reduced.
Runs 1 hour, 31 minutes.

Show Full Schedule Agenda:

HF0300 (Lislegard) Individual income tax provisions modified, and public pension benefit subtraction established.
HF1040 (J. Hanson) Individual income tax provisions modified, and Social Security benefits subtraction expanded.
HF2581 (Gomez) Income, estate, and property tax refunds; Internal Revenue Code incorporated, as amended through March 1, 2023.
HF1419 (Howard) Local government aid provisions modified, local affordable housing aid program established, and money appropriated.
HF2558 (Norris) Liquor taxation; excise tax on prepackaged cocktails reduced.

The Committee will finish the final two public testifiers on HF300/HF1040 from the 3/9 hearing and will not take additional public testimony on those two bills. Additional items may be added/removed to the agenda.

Materials will be posted to the Committee website when they are available Public testifiers for HF2581, HF1419 and HF2558 should email their full name, organization (if applicable) and preferred title to the Committee Administrator (Patrick.McQuillan@house.mn.gov) by 5 PM on Monday, March 13th. . Testimony will be limited to two minutes per testifier. The number of testifiers may be limited due to time constraints.Materials to be distributed to the Committee members are also due by 5 PM on Monday, March 13th to the Committee Administrator and the Committee Legislative Assistant Lauren Sabes (Lauren.Sabes@house.mn.gov). Please note: submitted written testimony is public and will be included in the official committee record. It may be posted to the committee webpage if received by deadline.

To learn more about requesting an accommodation, please visit the FAQs for Disability Access. If you have further questions on accommodations or accessibility, please contact the Committee Administrator.