Senate Taxes Committee reviews SF 2374 omnibus tax bill; film credit cuts and local aid reductions draw pushback

ST. PAUL, Minn. — The Minnesota Senate Taxes Committee on Wednesday reviewed Senate File 2374, the omnibus taxes “delete everything” amendment, hearing a section-by-section presentation from nonpartisan counsel and public testimony on multiple provisions ranging from a proposed increase in the net investment income tax to a new tax on social media platforms.

Committee counsel told members the bill as drafted would increase general fund revenues by about $625.6 million over the next four years while reducing property tax aids and credits by about $109.4 million, producing a combined general- fund savings of roughly $735 million. Major changes highlighted included raising the net investment income tax rate from 1% to 1.5% (an estimated $144.5 million), a $1 million-per-year cap on film production tax credits (noted as a $8.6 million reduction across four years), repeal of local government cannabis aid (about $64.6 million to the general fund), and a proposed excise tax on social media platforms estimated to raise $334.3 million.

“Madam chair and members, you have produced a good bill that will go a long ways in helping to solve the…