[{"_1":2,"_124":-5,"_125":-5},"loaderData",{"_3":4,"_26":27},"root",{"_5":6,"_17":10,"_18":19,"_20":21,"_22":10,"_23":-5,"_24":-5,"_25":10},"user",{"_7":8,"_9":10,"_11":10,"_12":-5,"_13":-5,"_14":15,"_16":-5},"roles",[],"isAuthenticated",false,"isPremium","planName","subscriptionStatus","featureFlags",{},"insightsBudget","isDevelopmentHost","userPreferences",{},"recaptchaSiteKey","6LcvOJcUAAAAAHsB-gPGfGktcRlKpH7OTIU_dMTD","isImpersonating","impersonation","affiliateStatus","isFreedomPortal","routes/v2/article/layout",{"_28":29,"_30":31},"notFound",true,"relatedArticles",[32,76,88,100,112],{"_33":34,"_35":36,"_37":38,"_39":40,"_41":42,"_43":44,"_45":46,"_47":48,"_49":50,"_51":52,"_53":54,"_55":56,"_57":58,"_59":60,"_61":62,"_63":64,"_65":66,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},"mediaId",6379533,"mediaKeyId","2135865-f4bac629a165dffc910bd114def8bd00","parentId",2135865,"title","Committee to continue property tax briefing; chair seeks approach to handle many property tax bills","audioSeconds",183,"startMs",4108890,"endMs",4292330,"viewUrl","/Search/View?dp=1&key=2135865-f4bac629a165dffc910bd114def8bd00&start=4108&end=4292","thumbnailUrl","https://assets.pipeline.soar.com/2135865-f4bac629a165dffc910bd114def8bd00/thumbnail_4108890.jpg","articleUrl","/articles/6379533/Minnesota/Committee-to-continue-property-tax-briefing-chair-seeks-approach-to-handle-many-property-tax-bills","mediaUrl","https://secure.pipeline.soar.com/6379533-68964f0803d94b133edc2be5555a2693/orig.mp4?Expires=1773151474&Signature=J144cA3-5A5t8iyuVx223Meil-lAhkTfWMXEfH9dRK7OHzDSI8cHoBJJOSW4loIYdfpMRn018pqjt2QCTS6v9XytjcrOGY8h1QqRXKOYT0mCgOyVueC1SLFqYkkGNF4RebdIUMAVFQFBs91fIW8oa~ysp6NVNn0p3XNhpou5FI0bbpZbFYtPprheO~x2FMKmarBjJzi58MZ94Gd3HCHDQR4tMxnF5~Z9SqtpNa8brQ2dKimHmnHYfhWkQyK4SpE7iBqda33zFN7-oUOIrV3I9sXlanYZ~iKwgib-WZmsMQQnGXi5dGM1USbApbQGPz5d7h8ImPpG0r~jKS71YBTeog__&Key-Pair-Id=KUT5TJCACFTXG","author","MNHouseInfo","date","2025-01-21T00:00:00Z","article","Jared Swanson of House Research briefly introduced himself and said the committee would receive a full property tax presentation the following day. Chair Matt Davids and several members then discussed committee procedure for handling a likely large volume of property tax bills during the session.

Davids said he was considering options — a full property tax division, a working group of members to vet proposals, or a different structure — and that leadership consultations with the speaker and majority leader would follow. \"If we think we're gonna hear every property tax bill come through this place, we're gonna be having some long nights,\" he said, urging members to weigh efficiency and member access. Members suggested a bipartisan working group as one possible approach.

Staff told members they will follow up with more detailed property tax materials and asked members for input on procedures for hearings, bill handling and scoring. The committee scheduled a fuller property tax presentation for Jan. 22, 2025.","mediaType","Video","parentTitle","House Taxes Committee 1/21/25","oneSentenceSummary","House Research previewed a fuller property tax briefing to come; Chair Davids said the committee will decide whether to form a working group or another process to handle a high volume of property tax bills.","taxTitle","2025 Legislature MN, Minnesota","taxId",77817,"location","Minnesota","headline","","shortSummary",{"_33":77,"_35":36,"_37":38,"_39":78,"_41":79,"_43":80,"_45":81,"_47":82,"_49":83,"_51":84,"_53":85,"_55":56,"_57":58,"_59":86,"_61":62,"_63":64,"_65":87,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6379537,"Staff reviews sales and use tax base, local taxes and governor’s recommendation to tax professional services",798,2905100,3703430,"/Search/View?dp=1&key=2135865-f4bac629a165dffc910bd114def8bd00&start=2905&end=3703","https://assets.pipeline.soar.com/2135865-f4bac629a165dffc910bd114def8bd00/thumbnail_2905100.jpg","/articles/6379537/Minnesota/Staff-reviews-sales-and-use-tax-base-local-taxes-and-governors-recommendation-to-tax-professional-services","https://secure.pipeline.soar.com/6379537-36ee9770582f8af17c125d76e702491f/orig.mp4?Expires=1773151474&Signature=atRUSVdY3R55Xb5JEmJ8WHXbrSyvOsOIsuhTMhIB90JHrnAhB79JqAEQ~X3PenlvFb3vnPV8kcbhpJHCJmQ0QGn9F4~z7OiaqAJryh34bgxB18uFb3e1wdH0cym5pzHaYtoT6n9pUFzkkVfA177IMMzLzUWFdbX70rXL9zwZFNIW67ZTNy519tVS4GmYmXKrPYwL2UWJy3jWce-URcxQYW9V81mk3wvKy43B9DmXZPHNABTIJcJn7~hTqOC6Lr8cezTxx-iOvMe-8bQudxqtPkRMx57GCq7LW9IhL-GgTgRD-aRICG-posyImX9ssWabnAww5GGlbS2iUk4vGkTfCA__&Key-Pair-Id=KUT5TJCACFTXG","Alex Hagler of House Research explained sales and use taxes to the House Tax Committee, describing the state combined rate, the legacy amendment portion and common exemptions.

Hagler said the combined state sales tax is 6.85%, composed of a 6.5% base rate and a 0.375% legacy amendment rate (the legacy portion supports constitutionally dedicated funds and staff noted that the legacy portion sunsets in 2034). He described the tax base as generally including tangible personal property and some digital goods and said most services are excluded unless the Legislature enacts them into the base.

Hagler listed common exemptions for individuals (food, clothing, prescription drugs) and noted businesses receive exemptions for capital equipment and certain farm machinery; sales to federal and local governments and many nonprofits are exempt. He said Minnesota is a member of the Streamlined Sales Tax Agreement and that changes to the base can raise compliance questions.

On local taxes, Hagler explained the difference between general local sales taxes (which apply to the full state base and require statutory authorization and often a voter referendum), county transportation taxes (statutory, commonly capped at 0.5%), and special local taxes such as lodging (voter approval generally not required) or food and beverage taxes (require legislative authorization). The committee discussed a moratorium on some general local sales taxes that expires June 1.

Representative Rosemarie Robbins and others asked about the governor’s recent sales‑tax recommendation to expand the base to include professional services such as legal and accounting; Hagler and members said the exact bill language had not been released and the committee invited the Department of Revenue for a full hearing when details were available.

Hagler also said liquor is subject to a gross‑receipts tax (2.5% cited in the briefing) and cannabis products carry a 10% gross‑receipts tax; both are layered above or in addition to the state tax environment for those goods. Members asked staff to provide comparative modeling when the department releases final language.","House Research overviewed Minnesota sales and use tax rates and exemptions, local sales tax options, legacy amendment funds and noted the governor’s proposed expansion of the sales tax base to include some professional services.",{"_33":89,"_35":36,"_37":38,"_39":90,"_41":91,"_43":92,"_45":93,"_47":94,"_49":95,"_51":96,"_53":97,"_55":56,"_57":58,"_59":98,"_61":62,"_63":64,"_65":99,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6379541,"Staff briefs committee on business taxes: pass‑through entity tax, apportionment and unitary rules",993,911150,1904930,"/Search/View?dp=1&key=2135865-f4bac629a165dffc910bd114def8bd00&start=911&end=1904","https://assets.pipeline.soar.com/2135865-f4bac629a165dffc910bd114def8bd00/thumbnail_911150.jpg","/articles/6379541/Minnesota/Staff-briefs-committee-on-business-taxes-passthrough-entity-tax-apportionment-and-unitary-rules","https://secure.pipeline.soar.com/6379541-1ff40d75fa660d4762f73fa0f5455abb/orig.mp4?Expires=1773151474&Signature=XhrUwARR2OaS~~1KVuLyVn1HzretOnHd3k~uxvebo0jUXiSQlen~1LL8l~3jS~DKgUSQiKxrbAk9JqVPt4Uo3m7Hr9VlVuyszLBaUU8Wa7cOm~erLNN2g0mbc0n9ebMwRXiffYqjUGrag2KQbAfHUdFxq6fuhREiIr3esstG2Kr3PTbpgeWKmWp9FhO99CZwNhFu74vvsRN~YkNfEttXjl5T9GCYdQlXYtdvrwnwi6U1c5WNzX1pjVOC3fgNP4cbvh9MZHpuzzYiAqkUqqmxjCg5jQHTBLMZ9d9QIf6B28MKenRDUlW9oHdsa~OGDlgRB6lB~J8BvJ9hKMIsHINRdw__&Key-Pair-Id=KUT5TJCACFTXG","House Research staff told the committee that Minnesota taxes business income differently depending on business form and reviewed recently adopted policy responses to federal changes.

Chris Klayman explained that C corporations are taxed at the entity level under the corporate franchise tax (federal form 1120 is the usual starting point), whereas pass‑through businesses (S corporations, partnerships, LLCs, sole proprietorships) are generally taxed under the individual income tax and thus their income passes to owners’ individual returns.

Klayman and Sean Williams described the federal limitation on state and local tax deductions (the SALT cap enacted as part of the 2017 Tax Cuts and Jobs Act) and Minnesota’s statutory response. Klayman said Minnesota enacted a pass‑through entity tax to allow pass‑through entities to pay tax at the entity level and thereby enable federal deductibility of state taxes; he said that measure was enacted around 2021.

Staff also explained apportionment: Minnesota generally uses a single‑sales‑factor apportionment in which a multistate corporation’s Minnesota tax base is the portion of its sales in Minnesota relative to total sales. On unitary taxation, staff said a unitary group is treated as a single taxpayer for some purposes; intercompany transactions are eliminated and the entire unitary group’s income is apportioned, which typically enlarges the denominator and can lower the apportionment percentage even though it brings more income into apportionment.

Members asked about conformity on extractive‑industry deductions (percentage depletion) and how long Minnesota has not conformed. Staff said percentage depletion generally applies to oil, gas and minerals and that they would follow up with more detailed research. Representative Patty Anderson and others discussed the administrative complexities that can arise when state and federal conformity differs for depreciation, net operating losses and other timing items.","House Research explained how Minnesota taxes businesses — differences between corporate franchise and pass‑through taxation, the state’s response to the federal SALT cap, apportionment by sales and unitary group treatment.",{"_33":101,"_35":36,"_37":38,"_39":102,"_41":103,"_43":104,"_45":105,"_47":106,"_49":107,"_51":108,"_53":109,"_55":56,"_57":58,"_59":110,"_61":62,"_63":64,"_65":111,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6379548,"House Research explains Minnesota individual income tax structure and marriage‑penalty credit",982,375001,1357970,"/Search/View?dp=1&key=2135865-f4bac629a165dffc910bd114def8bd00&start=375&end=1357","https://assets.pipeline.soar.com/2135865-f4bac629a165dffc910bd114def8bd00/thumbnail_375001.jpg","/articles/6379548/Minnesota/House-Research-explains-Minnesota-individual-income-tax-structure-and-marriagepenalty-credit","https://secure.pipeline.soar.com/6379548-fdc24c01f0cbdb67f61a943aa8c7029c/orig.mp4?Expires=1773151474&Signature=iKoVgI~K3IIRCAaB4Xl3fjXvfepS11DHCC23lY15aFDruMLV5aU~vf-80JcjFwGXO2YYepSO3Rsrn1NUKe5gsROPPK6bgo~XswwyAk~Ec6L9YtpGh1RTkCsDqdBdWknNtiGCQt~6J8lWVV1s8KpMCMIlHY0~3QMOT8YSsC63eEbc5e3EZ9WMihJ6JjFnvBe-tVI0jYkYPFR9BMf2fdmY8OOKjnpABBfepS3h-NC~3qayI8hBCTG~KHP6bjPVKC1sM7C5j4NhYrYjMJZS8YT5oASk5e7dkkskNkJEG9~9xiD8WB~tuF-uG6~N61BppJROrmAzgphrbusPi-oAj1uEfQ__&Key-Pair-Id=KUT5TJCACFTXG","House Research gave the committee a detailed overview of the individual income tax, including how Minnesota taxable income is calculated from federal adjusted gross income and state additions and subtractions.

Sean Williams explained the calculation flow and the purpose of tax credits: \"A credit allows you to take a dollar for dollar\" reduction of tax liability, whereas deductions reduce taxable income and are worth a percentage based on the taxpayer's marginal rate. Williams described refundable and nonrefundable credits and noted that refunds occur when refundable credits push liability below zero.

Staff provided several numeric examples used on the slides: the Minnesota standard deduction for tax year 2022 was listed as $29,900 for married couples filing jointly and $14,950 for single filers; the dependent exemption was $5,200 for 2022. Williams said Minnesota uses a four‑tier individual income tax with rates ranging from 5.35% to 9.85% for tax year 2025.

Representative Bobby Harter and others asked about the marriage‑penalty credit and its operation. Williams explained that because joint brackets and phase‑out thresholds are not double those of single filers, a marriage penalty can arise. \"The marriage penalty credit is designed to eliminate the marriage penalty from brackets only,\" he said, adding that the credit calculates the difference between filing as two single filers versus filing married‑joint and credits the difference against tax liability.

Representative Kristen Robbins asked whether Minnesota’s marriage penalty is large compared with other states; Williams said he did not have comparative figures on hand but offered to locate them for the committee. Members requested updated comparative data and noted interest in receiving numeric cross‑state comparisons rather than infographic circles.","House Research staff briefed the tax committee on Minnesota taxable income, standard deductions, credits and the marriage‑penalty credit and answered members’ questions about comparative data and bracket structure.",{"_33":113,"_35":36,"_37":38,"_39":114,"_41":115,"_43":116,"_45":117,"_47":118,"_49":119,"_51":120,"_53":121,"_55":56,"_57":58,"_59":122,"_61":62,"_63":64,"_65":123,"_67":68,"_69":70,"_71":72,"_73":74,"_75":74},6379553,"House Tax Committee hears nonpartisan staff outline roles, materials and tax concepts",448,3681,452241,"/Search/View?dp=1&key=2135865-f4bac629a165dffc910bd114def8bd00&start=3&end=452","https://assets.pipeline.soar.com/2135865-f4bac629a165dffc910bd114def8bd00/thumbnail_3681.jpg","/articles/6379553/Minnesota/House-Tax-Committee-hears-nonpartisan-staff-outline-roles-materials-and-tax-concepts","https://secure.pipeline.soar.com/6379553-ea6f530c52f16ae5def958caeb4222fc/orig.mp4?Expires=1773151475&Signature=JV32P0QGUCvceVGP3JIhkqAHmxU9xDJYR~HkC2UNAxucXiVlYoXUnbK8LxwZ5Os60sviXYmQqLTZn1Fd2CfBaTh~Om8dkq1F7bQs3GAP8uWwrMuCRXA61wEQo-xsRRIvWM4bGEO69ROnkAAHj9~Ta5NN4kR3seZ3ECHEW6p7ns0nGfaVrMznOYsKI7zYa1UA9O597vgj60lKlbX7nJ7aY3n1JEpRLBT1odtGpMFUINdIW~7V577n2fOvwfy31i2aflv~rLJFKrfVgubySjcKq6aM6i1UJLWYEneV4ramxtBPNHychvJnS7SkXJzYe5Tb9NqTXad5C6M-JshmNs63-g__&Key-Pair-Id=KUT5TJCACFTXG","Chair Matt Davids called the Minnesota House Tax Committee to order Jan. 21 and said the committee had a quorum. Nonpartisan House Research staff then gave an orientation covering the office roles, the typical weekly packet of documents and basic concepts used to evaluate tax proposals.

Sean Williams of House Research told the committee, \"Our role in the committee is to draft bills and amendments for the committee, write bill summaries, provide background research and overviews, answer questions about bill content and potential legal questions relating to bills, and then our office also does modeling of tax proposals.\" He described House Research's work on distributional and back-of-envelope fiscal estimates. Williams said House Fiscal typically focuses on revenue and budgetary effects.

Williams and other staff described the recurring documents members receive: bipartisan and nonpartisan bill summaries, partisan briefs, revenue estimates or fiscal notes and supporting spreadsheets and letters from testifiers. Williams emphasized the distinction between a tax base, tax rate and tax credits and explained how liabilities, credits and the tax gap determine how much revenue the state collects.

Committee members asked procedural questions about how documents are prepared and whether members may ask questions during presentations. Williams said members could ask questions during staff presentations. The meeting also included staff introductions from House Research and a brief preview that property taxes would receive a fuller briefing the following day.

The orientation included presentation slides and examples of tax-expenditure categories (agriculture, education, housing, energy, veterans) and how tax provisions can function like direct spending programs. Williams said the committee would see property-tax materials in greater depth at the next meeting.","Nonpartisan House Research and fiscal staff briefed the Minnesota House Tax Committee on staff roles, weekly documents and basic tax concepts during an organizational meeting Jan. 21, 2025.","actionData","errors"]

Article not found

Committee to continue property tax briefing; chair seeks approach to handle many property tax bills

Staff reviews sales and use tax base, local taxes and governor’s recommendation to tax professional services

Staff briefs committee on business taxes: pass‑through entity tax, apportionment and unitary rules

House Research explains Minnesota individual income tax structure and marriage‑penalty credit

House Tax Committee hears nonpartisan staff outline roles, materials and tax concepts