Minnesota Legislature reaches tax bill agreement | KAALTV.com

Minnesota Legislature reaches tax bill agreement

Updated: June 15, 2021 12:18 AM
Created: June 15, 2021 12:15 AM

(ABC 6 News) - A bipartisan deal has been reached on Minnesota's tax bill worth $944 million.

Under the agreement, there will be no new tax hikes, according to Sen. Carla Nelson (R-Rochester).

Nelson, also chair of the Senate Taxes Committee, said the state is not planning to tax Minnesotans on pandemic lifelines like unemployment benefits and federal Paycheck Protection Program (PPP) loans.

"We're laser-focused on empowering Minnesotans, spurring economic growth, and Covid relief," Nelson said. "We should not be taxing the lifelines that the federal government sent to Minnesota employees and employers."

Gov. Tim Walz and House Democrats initially pushed for tax increases on the wealthiest Minnesotans and corporations through a fifth-tier income tax bracket. They said their goal was to level the playing field and address disparities on Minnesotans most affected. 

The pushes were later dropped. Republicans argued it wasn't necessary due to the state's budget surplus and the need to give more relief.

Lawmakers are expected to move the tax bill forward soon.

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