Taxes

FORTIETH MEETING

2023-2024 Regular Session - Thursday, March 7, 2024

STATE OF MINNESOTA FORTIETH 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 1:05 PM on March 7, 2024 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
ELKINS, Steve
HOWARD, Michael
JOY, Jim
KOZNICK, Jon
LEE, Liz
LISLEGARD, Dave
OLSON, Bjorn
OLSON, Liz
PINTO, Dave
ROBBINS, Kristin
SWEDZINSKI, Chris
WITTE, Jeff
WIENER, Mike
YOUAKIM, Cheryl

Members excused:
ANDERSON, Patti
BRAND, Jeff
SMITH, Andy

A quorum was present.

Vice Chair Norris moved that the minutes from March 6, 2024 be adopted. THE MOTION PREVAILED.

HF3769 (Lislegard) A bill for an act relating to taxation; corporate franchise; modifying the effective date of a reduction in the limitation on the deductibility of net operating losses; amending Laws 2023, chapter 64, article 1, section 44.

Representative Lislegard moved that HF3769 be referred to the Committee on Ways and Means.

Representative Lislegard presented HF3769.

Representative Lislegard renewed the motion that HF3769 be referred to the Committee on Ways and Means. THE MOTION PREVAILED.

HF4449 (Youakim) A bill for an act relating to taxation; sales and use; removing the exemption for detachable units separately sold for landscaping equipment; removing land clearing services from the definition of sale and purchase; modifying the exemption for materials consumed in agricultural production; amending Minnesota Statutes 2022, sections 297A.68, subdivision 3; 297A.69, subdivision 2; Minnesota Statutes 2023 Supplement, section 297A.61, subdivision 3; repealing Minnesota Statutes 2022, section 297A.68, subdivision 40.

Representative Youakim moved that HF4449 be laid over for possible inclusion in the Omnibus Taxes bill.

Representative Youakim presented HF4449.

Testifying on HF4449:
• Matt Kuha, Director of Business Development, Irrigation by Design
• Scott Frampton, President, Landscape Renovations
Representative Youakim renewed the motion that HF4449 be laid over for possible inclusion in the Omnibus Taxes bill. The bill was laid over.

HF4463 (Tabke) A bill for an act to taxation; individual income and corporate franchise; modifying the Minnesota housing tax credit; amending Minnesota Statutes 2022, section 290.0683, subdivision 3.

Chair Gomez moved that HF4463 be laid over for possible inclusion in the Taxes Omnibus bill.

Representative Tabke presented HF4463.

Testifying on HF4463:
• Mary Tingerthal, former Commissioner, Minnesota Housing Finance Agency
• Libby Murphy, Director of Policy, Minnesota Housing Partnership
Chair Gomez renewed the motion that HF4463 be laid over for possible inclusion in the Taxes Omnibus bill. The bill was laid over.

HF4302 (Gomez) A bill for an act relating to taxation; making various policy and technical changes to individual income and corporate franchise taxes, sales and use taxes, property taxes and local government aids, and other miscellaneous taxes and tax-related provisions; amending Minnesota Statutes 2022, sections 116U.27, subdivision 2; 270C.445, subdivision 6; 273.13, subdivision 22; 289A.12, subdivision 18; 297A.66, subdivision 3, by adding a subdivision; 297I.20, subdivision 4; 375.192, subdivision 2; Minnesota Statutes 2023 Supplement, sections 290.01, subdivision 19; 290.0132, subdivisions 26, 34; 290.0134, subdivision 20; 290.0693, subdivisions 1, 6, 8; 290.0695, subdivision 2; 297E.06, subdivision 4; 477A.35, subdivision 6; Laws 2023, chapter 1, sections 22; 28.

Chair Gomez moved that HF4302 be laid over for possible inclusion in the Taxes Omnibus bill.

Chair Gomez presented HF4302.

Testifying on HF4302:
• Joanna Bayers, Legislative Director, Minnesota Department of Revenue
• Margaret Reisdorf, Attorney, Minnesota Department of Revenue
• Kenzie Gerber Lord, Attorney, Minnesota Department of Revenue
• Peter Hendricks, Attorney, Minnesota Department of Revenue
• Jim Jordan, Attorney, Minnesota Department of Revenue
Chair Gomez renewed the motion that HF4302 be laid over for possible inclusion in the Taxes Omnibus bill. The bill was laid over.

The meeting adjourned at 2:12 PM.

____________________________________
Representative Aisha Gomez, Chair

_____________________________________
Lauren Sabes, Committee Legislative Assistant

More Info On This Meeting..

Bills Added:

HF3769 (Lislegard) - Corporate franchise tax provisions modified; effective date modified of a reduction in the limitation on the deductibility of net operating losses.
HF4302 (Gomez) - Individual income and corporate franchise taxes, sales and use taxes, property taxes and local government aids, and other miscellaneous taxes and tax-related provisions policy and technical changes made.
HF4449 (Youakim) - Sales and use tax exemption removed for detachable units separately sold for landscaping equipment, land clearing services removed from definition of sale and purchase, and exemption modified for materials consumed in agricultural production.
HF4463 (Tabke) - Individual income and corporate franchise tax provisions modified, and Minnesota housing tax credit modified.

Documents:

1) Taxes Agenda 3.7.24.pdf - 3/6/2024
2) 3.6.24 Taxes Thirty Ninth Meeting Minutes.pdf - 3/6/2024
3) HF3769-0 Bill Language.pdf - 3/6/2024
4) HF3769-1 NOL Deduction Delay TY24 Revenue Estimate.pdf - 3/6/2024
5) HF3769 House Research Summary.pdf - 3/6/2024
6) HF3769 NOL MN Chamber letter support 3.7.24.pdf - 3/6/2024
7) HF4463-0 Bill Language.pdf - 3/6/2024
8) HF4463 Housing Tax Credit Carryover Revenue Estimate.pdf - 3/6/2024
9) HF4463-0 House Research Summary.pdf - 3/6/2024
10) HF4449-0 Bill Language.pdf - 3/6/2024
11) HF4449 lawn care_1 Revenue Estimate.pdf - 3/6/2024
12) HF4449 House Research Summary.pdf - 3/6/2024
13) HF4449 Mustard Seed LoS.pdf - 3/6/2024
14) HF4302-0 Bill Language.pdf - 3/6/2024
15) HF4302_1 Policy and Technical Bill Revenue Estimate.pdf - 3/6/2024
16) HF4302 2024 Policy and Technical Bill Summary 3.7.2024.pdf - 3/6/2024

Audio:
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House TV Video:
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00:41 - HF3769 (Lislegard) Corporate franchise tax provisions modified; effective date modified of a reduction in the limitation on the deductibility of net operating losses.
04:20 - HF4449 (Youakim) Sales and use tax exemption removed for detachable units separately sold for landscaping equipment, land clearing services removed from definition of sale and purchase, and exemption modified for materials consumed in agricultural production.
26:50 - HF4463 (Tabke) Individual income and corporate franchise tax provisions modified, and Minnesota housing tax credit modified.
56:37 - HF4302 (Gomez) Individual income and corporate franchise taxes, sales and use taxes, property taxes and local government aids, and other miscellaneous taxes and tax-related provisions policy and technical changes made.
Runs 1 hour, 7 minutes.

Show Full Schedule Agenda:

HF3769 (Lislegard) Corporate franchise tax provisions modified; effective date modified of a reduction in the limitation on the deductibility of net operating losses.
HF4463 (Tabke) Individual income and corporate franchise tax provisions modified, and Minnesota housing tax credit modified.
HF4449 (Youakim) Sales and use tax exemption removed for detachable units separately sold for landscaping equipment, land clearing services removed from definition of sale and purchase, and exemption modified for materials consumed in agricultural production.
HF4302 (Gomez) Individual income and corporate franchise taxes, sales and use taxes, property taxes and local government aids, and other miscellaneous taxes and tax-related provisions policy and technical changes made. (Minnesota Department of Revenue Policy Bill)

Additional items may be added/removed from the agenda. Materials will be posted to the Committee website when they are available. Public testifiers should email their full name, organization (if applicable) and preferred title to the Committee Administrator (Patrick.McQuillan@house.mn.gov) and the CLA (Lauren Sabes Lauren.Sabes@house.mn.gov) by 1 PM on Wednesday, March 6th. Materials to be distributed to the Committee members are also due by 1 PM on on Wednesday, March 6th. 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. Testimony may be limited to two minutes per testifier.
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