Tax Bills Updates

The Senate tax package was introduced on Wednesday. Key provisions include:

• No significant changes to the lodging tax.
• The restaurant equipment sales tax exemption that we have advocated for was not included.
• The 1% food and beverage sales tax for the city of Wayzata is included.

 
The House tax package was approved on Thursday. Key provisions include:

• $3B in tax cuts with increases for top earners (party-line vote of 69-57).
• Local sales taxes and restaurant equipment sales tax exemption not included.
• Creates a new fifth-tier income tax rate for the highest 0.8% of earners

 
Both packages include a new worldwide combined reporting provision for corporations – which would make Minnesota the first state and first governing body in the world to have such tax implications. The Council on State Taxation (COST) released a statement in response to this unprecedented provision.

Read Axios comparison of the tax bills
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Read Session Daily Article on House Passage
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Read the Council On State Taxation's Response to the Provision on Corporations