Key Issues: Tax competitiveness
Ensuring Minnesota's tax climate supports long-term success.
The Chamber focused on speeding Minnesota’s economic recovery by helping business fully reopen; providing relief to hard hit industries and preventing additional cost burdens on employers, as the state comes off the worst economic downturn in over 70 years. A top priority was federal tax conformity to prevent a $409 million state tax hit for the over 190,000 Minnesota businesses that received federal Paycheck Protection Program (PPP) loans. PPP helped to retain employees during the worst of the COVID-19 pandemic, and keep their businesses operational. The Senate passed the PPP conformity bill in early March, but the House delayed until late in session and only included partial conformity.
The Chamber strongly opposed permanent tax increases proposed by the governor and House Democrats that would have made Minnesota a tax outlier both nationally and internationally and slow Minnesota’s economic recovery by discouraging investment, talent recruitment and retention.
Final budget and tax bills were passed in a June special session with no new taxes; 9.5% growth in spending of $4.5 billion; $754 million in tax relief including full conformity with PPP loans; $491 million increase transfer to the budget reserve; $500 million in federal funds for the governor to spend; and $1 billion of the federal funds left on bottom line for legislators to allocate in the 2022 session.
The Chamber's Beth Kadoun advocates for a tax extension for Minnesota businesses during the 2020 legislative session.
Return on investment for your Minnesota Chamber membership
Our work gets results
- Passed section 179 tax relief to help small businesses and farmers.
- Saved $1,580 in business property taxes per million dollar property.
- Prevented $13,000 in tax increases per business in Minnesota.
- Prevented a .6% payroll tax increase on employers.
2022 priorities include:
- Encourage long term economic growth by reducing uncompetitive taxes that hinder entrepreneurship, talent recruitment and retention, and business growth and investment. This includes getting Minnesota out of the top ten highest tax rankings by lowering top rates for both corporate and individual income taxes, continuing progress in reducing the state business property tax levy and enacting federal estate tax conformity.
- Reduce administrative compliance burdens including repeal of the corporate AMT and enacting vendor compensation for sales tax remittance.
- Help speed Minnesota’s economic recovery by encouraging investment and helping hard-hit industries by enacting conformity with forgivable loans and enacting other policies to help cash flow and reduce taxes for those negatively impacted by the COVID-19 economic slowdown.
- Encourage innovation through enhancements to the research and development tax credit and funding for angel investment tax credits.
- Improve taxpayer procedural protections and administration by requiring the Department of Revenue to follow tax court decisions and provide additional taxpayer guidance with Private Letter Rulings.
- Oppose tax increases that will undermine Minnesota’s competitiveness and hinder economic recovery.