Last week the legislature finally passed legislation that brings Minnesota’s tax code in alignment with some provisions of the federal tax code in tax year 2013, with the other major provisions starting in 2014. This bill also repeals the sales tax on commercial/industrial equipment repair, warehousing services and telecommunications machinery and equipment starting April 1, 2014. Governor Dayton signed the bill on Friday.
While I’m happy we were able to repeal the job-destroying business-to-business taxes that were enacted by the Democrats last year and I’m glad that Minnesota taxpayers will be able to keep more of their own money, I’m disappointed it took the legislature until mid-March to fix these problems with the April deadline to file taxes quickly approaching. Reportedly, an internal dispute among DFL legislative leaders about a wasteful, lavish, $90 million office complex for state senators was the reason for the delay.
While the bill passed last week is a good start, it still falls short considering there is a $1.2 billion surplus. Notably absent items:
· Increased Standard Deduction for married joint filers which would have saved 640,000 married couples an average of $112 per return for tax year 2013.
· Retroactive repeal of business-to-business sales tax that went into effect in 2013 which would have returned $55.9 million to hardworking Minnesota taxpayers.
According to the Minnesota Department of Revenue, if you are affected by these tax changes and have already filed your return, one of three things will occur:
· The Minnesota Department of Revenue will fix your return and send a letter explaining what was fixed
· The Minnesota Department of Revenue will request more information from you so they can fix your return
· The Minnesota Department of Revenue will notify you they cannot fix your return. If this happens, you will need to file an amended return.
So much more needs to be done in Minnesota to make us an inviting place to do business. According to the Tax Foundation, Minnesota ranks 47 out of 50 - nearly dead last - in their 2013 State Business Tax Climate Index.
If you have any questions about these tax changes or concerns about any state legislative issue, you can contact me by e-mail at Rep.Marion.ONeill@House.MN or call my office at 651-296-5063. You can also write a letter to me. My office address at the Capitol is 229 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd, St. Paul, MN 55155.