[{"_1":2,"_100":-5,"_101":-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],{"_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",6332319,"mediaKeyId","2307891-33a6f74c053413e8663903a6adf70316","parentId",2307891,"title","Chair lays over bill to phase out Minnesota estate tax after hours of testimony","audioSeconds",2394,"startMs",2026115,"endMs",4420420,"viewUrl","/Search/View?dp=1&key=2307891-33a6f74c053413e8663903a6adf70316&start=2026&end=4420","thumbnailUrl","https://assets.pipeline.soar.com/2307891-33a6f74c053413e8663903a6adf70316/thumbnail_2026115.jpg","articleUrl","/articles/6332319/Minnesota/Chair-lays-over-bill-to-phase-out-Minnesota-estate-tax-after-hours-of-testimony","mediaUrl","https://secure.pipeline.soar.com/6332319-de0f6c1dd06e3d651983604278cdf9cb/orig.mp4?Expires=1775100099&Signature=X9UdEXQuS1FiwLQ6OygIDuteruSy0koOEkz4zW1neesLvY8ftL2EhDrHEwmIq~fzaI3aQNYvPUlpBnVOHN9nFB3TH3H4HOnyKXtGRO4WWS58xnDh1QmwMfmTkCr~XaN6h2C-qacLylCnfnPRPM3NBYfvobKtzzKix1c1RLyIr9Rb2b8B3t2iBQGHqlXnpz9jnPK9S7~OZ1OQwmOg4Ut9D~Ao0WGuqscBSJTXpZSTUrSKTxx5NYojkDxbFM1mcB6iKdywclib8INsfGsmJAU41mJv0Zw-zJO60YDP4uTq674hftTK0rfPhgRFb9xXlXPymJnXAv948PnXUhE0Si1fUA__&Key-Pair-Id=KUT5TJCACFTXG","author","MNHouseInfo","date","2025-02-13T00:00:00Z","article","House File 170, a proposal to phase out Minnesota's estate tax, was laid over by the House Taxes Committee on Oct. 12 after extended discussion and several witnesses.

Chair Davids, who introduced the measure, described the proposal as a phased reduction of estate tax rates to zero over roughly 7–10 years. He emphasized concerns about heirs being taxed after an individual's lifetime of taxed earnings and said the bill’s cost was estimated in committee documents at roughly $200 million in the outyears. House Research staff clarified details of current exemptions: the record cited a $3 million general exclusion and an additional $2 million qualified farm and small-business subtraction, creating a $5 million effective protection in those cases.

Hunter Peterson, public policy specialist with the Minnesota Farm Bureau Federation, testified in support and said farm assets are often illiquid: “A limitation on the estate tax exemption means that each year fewer and fewer farm families will be protected from the estate tax and this is a clear risk to the continuity of family farms,” Peterson said. Peterson provided a numerical example showing farmland values can push family estates above the exemption and create liquidity pressure at death.

Committee staff reported estate-tax receipts of about $280.2 million in fiscal 2026 and a forecast of about $310 million in a later fiscal year, and noted estate taxes are deposited to the general fund. Members debated distributional and policy trade-offs: Representative Smith argued the estate tax is the most progressive tax in the state code and that eliminating it would benefit very wealthy heirs; other members said the bill seeks to protect family farms from forced sales. Representative Harder, speaking from personal experience as a farmer, said the proposal addresses real pressures on family operations: “I work hard for what I have… I am just not gonna sit in any committee anymore and listen to the attack on farmers,” Harder said, urging sensitivity to farm liquidity constraints.

The committee laid House File 170 over for possible inclusion in the omnibus tax bill. Members requested additional revenue and incidence analysis, and nonpartisan staff said they would follow up with percentages and counts of estates currently subject to the tax.

Why it matters: The estate tax affects the transfer of wealth at death and has been defended as one of the state’s most progressive levies while opponents contend it can force illiquid family businesses or farms to sell assets to pay tax bills. Phasing out the tax would have multiyear fiscal impacts on the general fund and ongoing implications for wealth transfer policy.

Next steps: H.F. 170 is laid over for potential inclusion in the omnibus tax bill; the committee asked staff for more detailed incidence data and fiscal modeling before further action.","mediaType","Video","parentTitle","House Taxes Committee 2/13/25","oneSentenceSummary","Chair Davids introduced House File 170 to phase out the state estate tax over several years; committee members and witnesses, including the Minnesota Farm Bureau Federation, testified. The committee laid the bill over for possible inclusion in the omnibus tax bill.","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},6332324,"Committee lays over permissive bill allowing local land-value taxation experiments",1732,377765,2109775,"/Search/View?dp=1&key=2307891-33a6f74c053413e8663903a6adf70316&start=377&end=2109","https://assets.pipeline.soar.com/2307891-33a6f74c053413e8663903a6adf70316/thumbnail_377765.jpg","/articles/6332324/Minnesota/Committee-lays-over-permissive-bill-allowing-local-land-value-taxation-experiments","https://secure.pipeline.soar.com/6332324-0f294e7c44f7c875873e4946e986ac77/orig.mp4?Expires=1775100099&Signature=aSqXUZXRvQZgS7nMPcO25tnVoUZFrr7-BYz9IH1TGhoPa6Zf3jEoU~wRe7lJj~fL6nffws~SVRbibbxRTdEACPHO8C3D~gO7R~z74Ipq1b4bIMw9SvnHvYuODyGLjuWnrp3bRMXzlAQS8mJdpYnzs6qyQc9nKBmQZ~KGDgRQmOsXWtHbPyg6O-B8U0e74-o1cAv1SVuvryC52-WOEOg~DyZP247zx0AoyG8-kfXB3yfkeqYRbjF2CcruzU4hfCPOZnXzbLXa-1KNi1wRNNz2-jHW0g0yyPlX8ZGuJRQHjOCfDt2~iNi7sFyVGN3buJ9NWBsjbKHwa-hwk~UhaJXQjA__&Key-Pair-Id=KUT5TJCACFTXG","The House Taxes Committee on Oct. 12 laid over House File 161, a permissive bill that would allow Minnesota cities to experiment with land value taxation — commonly described as a “split-rate” system that taxes land and structures at different rates — within designated redevelopment districts.

Representative Elkins, the bill author, opened the discussion and framed the proposal as a tool to discourage land speculation, encourage redevelopment, and better align taxes with land use. “Under our current property tax system, if you improve or redevelop your property, your property taxes will go up. And if you neglect your property or leave it for value, your property taxes will go down,” Elkins said in overview of the policy objectives.

Joshua Hudak (Sierra Club Minnesota North Star Chapter), identified as the senior program manager for land use and transportation, testified in favor, saying, “Land value tax is about local control. It's about, a policy tool that can help with these situations,” and argued the measure would incentivize reuse of vacant and underused urban land.

Brian Cook, director of tax, fiscal policy and elections for the Minnesota Chamber of Commerce, testified with concerns about shifting the property tax burden. Citing a working paper from the Lincoln Institute of Land Policy, Cook warned that split-rate systems can shift tax burdens toward commercial and industrial parcels and said Minnesota businesses already shoulder a disproportionate share of property taxes.

Committee members asked how the proposal would interact with tax-exempt properties, zoning and comprehensive plan designations, tax increment financing and negotiated developer agreements. Elkins said the measure is permissive and intended for targeted redevelopment districts; he noted assessors will need reliable land-only valuations for implementation. Several members said they wanted more analysis on rate structure and distributional effects, so Elkins moved to lay the bill over for possible inclusion in the omnibus tax bill.

Why it matters: Land value taxation changes incentives by lowering taxes on improvements while increasing taxes on undeveloped or underutilized land; proponents say it can spur redevelopment and housing supply, while business groups fear unintended tax shifts onto commercial and industrial property if used broadly.

Next steps: House File 161 was laid over for possible inclusion in the omnibus tax bill; the committee signaled more technical work and stakeholder negotiations would be necessary before any final action.","House File 161, a permissive bill enabling municipalities to experiment with land value (split-rate) taxation in redevelopment districts, was presented, discussed by proponents and opponents, and laid over for potential inclusion in the omnibus tax bill.",{"_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},6332329,"House panel lays over bill to forgive LGA penalty for Stuart",368,70955,439765,"/Search/View?dp=1&key=2307891-33a6f74c053413e8663903a6adf70316&start=70&end=439","https://assets.pipeline.soar.com/2307891-33a6f74c053413e8663903a6adf70316/thumbnail_70955.jpg","/articles/6332329/Minnesota/House-panel-lays-over-bill-to-forgive-LGA-penalty-for-Stuart","https://secure.pipeline.soar.com/6332329-0deece783816527397589216ab672189/orig.mp4?Expires=1775100099&Signature=d5L~HnK6m8bg~i2lqoa5xuC9jgw7Ya21Wugiwqk40gerDWLcEGSU9pmpU0yMZtMDPDCyDBDa5LKFGjw2438XyCLkto350GfC7-HcMJZLwZmvcgNWL4ktWLVJI6Xn2hfJ8RaqP9ll~Ei0AB047QdglUixIVOcYyxFYMJV0tXq54A0aCBXcUfeRynJeH8uAx1BnErPaGBfL8HN2l8Jdj2HUYCgz1dCBgCQXDvHKXV7LmhvsYZuYM6h5KhjcaRSyhPlhR0CVcymhhePIpczd3FOFlY26mqRWtfZn32f1cIkdH2cUfwCnXdxd58Fxkt5k6Fqf0kLxtG8dZzyKm6ztjalGQ__&Key-Pair-Id=KUT5TJCACFTXG","The House Taxes Committee on Oct. 12 laid over House File 146 for possible inclusion in the omnibus tax bill. The bill would forgive an LGA (local government aid) penalty that kept the city of Stuart from receiving a scheduled payment after a missed audit deadline.

Chair Davids opened the item and Representative Gilman moved House File 146, describing it as “a rerun” of a measure brought last year. Beth Johnston of the League of Minnesota Cities told the committee, “H.F. 146 is what we commonly refer to as an LGA penalty forgiveness bill,” and said the league works with cities and the Office of the State Auditor to help municipalities meet audit deadlines.

Johnston said Stuart had missed a deadline while transitioning between city clerks and “they are now in compliance with the Office of the State Auditor.” Committee members noted far fewer cities appear before the tax committee for LGA forgiveness than in prior years. Chair Davids described the proposal as intended to make the city whole for what committee members called a clerical error.

No formal committee vote was taken on the floor; Representative Gilman moved that the bill be laid over for possible inclusion in the omnibus tax bill, and the chair announced it would be carried forward in that manner.

Why it matters: LGA payments are a recurring state aid stream for cities; forgiveness bills allow a city that missed a statutory deadline (often audit-related) to receive funds it would have otherwise lost. The committee discussed that the League of Minnesota Cities had worked to reduce the number of cases in recent years, and that Stuart’s missed payment stemmed from an administrative error during a staff transition.

Next steps: House File 146 was laid over for possible inclusion in the omnibus tax bill, meaning the bill remains active for consideration during tax bill negotiations.","The House Taxes Committee laid over House File 146, a bill that would forgive a missed Local Government Aid (LGA) payment deadline for the city of Stuart after the city returned to compliance, allowing possible inclusion in the omnibus tax bill.","actionData","errors"]

Article not found

Chair lays over bill to phase out Minnesota estate tax after hours of testimony

Committee lays over permissive bill allowing local land-value taxation experiments

House panel lays over bill to forgive LGA penalty for Stuart