Minn. Senate Taxes Committee approves omnibus tax bill after amendments, amid debate over local aid and sports betting placeholder

ST. PAUL, Minn. — The Minnesota Senate Taxes Committee on May 8 voted to recommend passage of Senate File 2374, the chamber’s omnibus tax bill, after approving several amendments and rejecting one that would have removed a sports-betting placeholder.

The committee, chaired by Senator Rest, adopted technical and policy changes including the A4DE, A7 and A10 amendments and rejected the A13 amendment (which would have removed sports-betting placeholder language). The committee then voted to send the bill, as amended, to the Senate floor.

Why it matters: The bill includes a range of statewide tax and aid provisions that senators said will affect county program aid (CPA), local government aid (LGA), business tax policy and targeted local projects. Several senators warned cuts to LGA and CPA could shift costs to property taxpayers; other senators praised provisions aimed at supporting agriculture, rural schools, data centers, sustainable aviation fuel and a social-media tax.

Most important actions and outcomes

- Senate File 2374 taken from the table: motion carried by voice vote; mover: Senator Klein. - A4DE amendment: adopted (voice vote); mover: Senator Klein. - A7 technical amendment: adopted (voice vote). The amendment adjusts effective dates, modifies an appropriation for soil-and-water conservation district aid for FY26-27, clarifies a notice requirement for property-tax abatements, and corrects a cross-reference in the Sustainable Forest Incentive Program; mover: Senator Klein. - A10 amendment (directed-payment language tied to Hennepin County, North Memorial Hospital and a potential Twins lease extension): adopted (voice vote); mover: Senator Klein. - A9, A11 and A12 amendments: offered and subsequently withdrawn (mover: Senator Dibble for each withdrawn amendment). - A13 amendment (would have removed placeholder language for sports betting): failed on roll call, 3 yes, 6 no; mover: Senator Dibble. - Final motion to recommend Senate File 2374 as amended to pass: carried by voice vote; mover: Senator Klein. The chair also instructed bipartisan staff to make technical changes to reflect the committee spreadsheet.

Major points from debate

Concerns about local aid and property taxes: Several senators urged caution about reductions to LGA and CPA. Senator Miller said, “When you reduce county program aid or local government aid, property taxes tend to go up.” Senator Nelson and others echoed that cutting state aid would shift costs to counties and cities and, ultimately, to property taxpayers.

Criticism of broader tax policy and timing: Senator Drazkowski called the bill a misstep for taxpayers and argued the Legislature was increasing tax burdens after recent large budget activity: “The people of Minnesota got smoked the last biennium,” he said, criticizing rising taxes and spending decisions.

Support for targeted and modern-economy provisions: Senators including Hauschild, Dibble and Putnam spoke in favor of provisions they said support a “modern economy.” Senator Hauschild said the bill “protect[ed] Northern Minnesota” from cuts and highlighted items such as adjustments for rural schools, a beginning-farmer tax credit, a film tax credit (noted as reduced but not eliminated in committee), provisions for sustainable aviation fuel, and a proposed social-media tax intended to capture value from data-driven platforms.

Sports betting placeholder: Senator Dibble moved A13 to remove placeholder language for sports betting; the motion failed on a roll call vote (3–6). Supporters of keeping the placeholder said the Senate needed to study the matter in committees with jurisdiction; opponents said negotiations and stakeholder work over multiple years supported keeping the provision available for further discussion.

Directed payments and local projects: Senator Klein described the A10 amendment as language negotiated with Hennepin County and local stakeholders that would divide certain directed payments stemming from ballpark-related sales tax between Hennepin County and North Memorial Hospital, and would provide for a possible extension of the Twins’ lease at Target Field. Senator Nelson confirmed the provision applies specifically to Hennepin County and North Memorial.

Withdrawn proposals: Senator Dibble offered several amendments that he later withdrew, including proposals on solid-waste tax preferences for nonprofits (A9), a sales-tax exemption for an amphitheater at Upper Harbor Terminal in North Minneapolis (A11; estimated value about $300,000), and a proposed deletion of a $10 million appropriation for the City of Minneapolis (A12). On A12, senators discussed that the $10 million included an $8 million Lake Street grant and a $2 million component tied to the Roof Depot site; staff said the House had a provision that repurposed that funding in a different form.

Votes at a glance

- A13 (remove sports-betting placeholder): Roll call 3 yes, 6 no (Yes: Senator Dibble; Senator Drazkowski; Senator Nelson). No: Senator Rest; Senator Klein; Senator Hauschild; Senator Miller; Senator Putnam; Senator Weber (final tally reported as three yeses, six nos). - Final committee recommendation: Senate File 2374 as amended — recommended to pass (voice vote). Bipartisan staff instructed to make technical changes.

What’s next

The committee’s recommendation sends Senate File 2374 to the full Senate for further consideration and potential floor action. Several senators said conference committee negotiations will follow, where differences with the House and final funding destinations—particularly for local aids and targeted appropriations—are likely to be negotiated.

Sources and evidence

This article is based on the Minnesota Senate Taxes Committee hearing transcript, May 8, 2025. Key moments cited in this article are recorded in the committee transcript, including motions, roll-call results and direct remarks by committee members.