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Senate Taxes Committee adopts DE amendment to omnibus tax bill advancing social-media excise, homestead refund and major conformity items
Summary
The Minnesota Senate Taxes Committee on April 29 adopted a delete‑everything amendment to Senate File 5052 and advanced the omnibus tax package for markup. The DE includes a new social‑media excise, one‑time homestead credit increases, several federal conformity items and multiple local‑tax and aid changes.
The Minnesota Senate Taxes Committee adopted a delete‑everything amendment to Senate File 5052 on April 29 and advanced the omnibus tax bill for further amendment and markup the next day.
Committee Chair Rest opened the session and called staff to walk the committee through the DE amendment. A committee presenter summarized the bill's projected net general fund effect as a $10,470,000 cost in fiscal 2026–27 and a net $416,817,000 revenue increase in fiscal 2028–29, citing a package of conformity and excise changes that drive the longer‑term revenue gains.
Why it matters: The DE bundles broad changes across income, corporate, property, sales and special taxes. It contains major conformity items tied to the federal HR 1 changes, several targeted property‑tax relief provisions and a new social‑media data‑collection excise designed to capture revenue from digital platforms.
Key provisions and figures: Committee staff called out three large revenue drivers in the DE: federal conformity adjustments (including bonus depreciation and limits on deductions for excessive employee remuneration), a revised social‑media excise tax whose higher tier rates are projected to raise $104.7 million in the current biennium and $432.5 million in FY28–29, and other conformity items. Article 3 contains property‑tax changes including a one‑time 12% increase in the homestead credit refund (displayed as a one‑time cost of $100.8 million). The bill also increases soil and water conservation district (SWCD) aid by $2 million per year and includes a package of local sales and special tax authorizations.
Department testimony: Paul Marquart, commissioner of revenue, testified for the governor in support of the DE‑amended bill, praising conformity elements and a revenue‑rulings program intended to improve taxpayer transparency. "This is a good bill," Marquart said, adding that the bill "will help strengthen the health of our budget and assure going into the future that we have a very stable, strong, and balanced budget." (Paul Marquart, Commissioner of Revenue)
Local and programmatic items: The DE also modifies Minneapolis sales remittance rules for payments to the Minnesota Sports Facilities Authority, contains targeted appropriations such as a $250,000 grant to South St. Paul for planning and a $7 million appropriation related to attracting PGA events, and includes special TIF authorizations for specified cities.
Procedure and next steps: The committee adopted the DE amendment by voice vote after a motion on the floor; members were told the amendment will be subject to further amendments and formal markup the following day. The committee then heard testimony from the commissioner and multiple stakeholders before adjourning until 8:30 a.m. the next day.
