House tax panel combines conformity, DMC bills
The Minnesota House taxes committee advanced a bill today that conforms state law to federal tax changes after adding a provision related to the Destination Medical Center in Rochester.
The amendment, which began as a separate bill, is aimed at clarifying the intent of the DMC legislation passed in 2013 to keep state money flowing to the development project after the Minnesota Attorney General's office issued an opinion that said the law didn't permit as much public money to be spent as supporters had intended.
“I’m hoping that the committee can support me on the amendment just to clear up for the attorney general two points that the attorney general felt were not clear,” said House Tax Chair Greg Davids, R-Preston.
Some DFL members of the tax panel said they supported both bills but objected to them being rolled into one.
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Minnesota Revenue Commissioner Cynthia Bauerly testified in support of the conformity measure, which aligns state tax policy with recent federal updates. Her department wants the changes enacted before Jan. 20, when the income tax filing season begins.
Bauerly also told the panel that the Dayton administration supports the DMC provision.
“I know that the clarity is very important, both to the community of Rochester, but the governor is also supportive of moving as quickly as possible and clarifying this,” Bauerly said.
The Senate taxes committee also advanced a version of the federal conformity bill today that did not include the DMC amendment language.
During the Senate hearing, Todd Koch of the Minnesota Society of Certified Public Accountants told senators that the conformity updates will simplify his job and save his clients money.
“An increased complexity is frankly the same as a tax increase, because believe it or not I don’t do extra work for no extra fees. If it costs me more to get a return done, I charge my clients more,” Koch said.
The long list of changes in the bill includes extensions on the deductions for teachers that purchase classroom supplies and college students paying tuition. There are also changes related to racehorse owners and film production.