Plus: Don't miss CPA Day at the Capitol
MNCPA
MINNESOTA SOCIETY of
CERTIFIED PUBLIC ACCOUNTANTS
Legislative Digest
MARCH 2, 2018
Are big tax changes coming in 2018?
Legislators hit the ground running when the 2018 legislative session began Feb. 20. The House and Senate tax committees have held four hearings to begin discussing federal conformity in a year when most didn't expect a tax bill in Minnesota.

As you may recall, the 2017 Legislature passed a tax bill. Gov. Mark Dayton signed the bill into law but line-item vetoed legislative operating funding in another bill, which resulted in the Legislature filing a lawsuit against the governor.

Many believed if there was a tax bill in 2018, it would only make small adjustments. Then, the Legislature would pass a capital bonding bill along with local bills and adjourn for the year.

The federal tax changes passed late in December and the extenders package Congress included in the federal budget bill earlier this year changed that line of thinking. These changes mean taxpayers will face significant tax increases unless the Legislature adjusts Minnesota's tax code.
MNCPA members testify
MNCPA members Elizabeth Bystrom and Todd Koch testify in front of the House Taxes Committee about addressing a tax bill early in the session if legislators intend on approving retroactive changes to last tax year.
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Federal tax changes effect on Minnesotans
The Feb. 28 budget forecast showed a revenue surplus of $329 million, which is an increase from the November projected deficit of $188 million. This surplus is the result of several factors, including an increase in GDP and consumer spending, and increased projections in revenue collected from the individual income tax, general sales tax and corporate franchise tax. The Minnesota Department of Revenue's preliminary estimates show that without changes to Minnesota's tax code, the state can expect to see additional revenue ranging from $4.6 million to $614 million.

Minnesota Management and Budget forecast summary

Full forecast

Minnesota Department of Revenue estimated new revenue as of Feb. 16

FY 2018 FY 2019 FY 2020 FY 2021
$4,600,000 $459,380,000 $553,930,000 $614,450,000

Read the DOR estimate

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Last chance to register!
Attend CPA DAY at the Capitol on March 7
8 a.m. - noon | St. Paul | 3 CPE credits | Free for members

Speak Up! Legislators need to hear from you.

As Minnesota eases into the shortened 2018 legislative session, tax uncertainty is at the top of everyone's list and policymakers are more undecided than ever about how to proceed. This year's legislative session presents a unique opportunity for the CPA profession to shape the conversation.

Use your status as a CPA and trusted business adviser to educate lawmakers on the issues critical to business and the accounting profession. Who better to help them understand the Capitol Drawingeffect tax changes will have on taxpayers and the state's fiscal health.

If you have questions about CPA Day, please contact Geno Fragnito, MNCPA director of government relations at gfragnito@mncpa.org.

Ready to register?
Contact Judy Cochran at jcochran@mncpa.org or 952-885-5501 to RSVP for this event.
You have the power to make a difference
The MNCPA works continuously to strengthen existing relationships with legislators and elect those who support the CPA profession. PAC donations help make this possible. Make a contribution and help increase the power of the PAC. Every dollar counts!
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Geno Fragnito Your Lobbyist
Geno Fragnito
Geno Fragnito, director of government relations, is the MNCPA's registered lobbyist working full time on behalf of the membership. For more information or to get involved, contact Geno at 952-885-5550 or gfragnito@mncpa.org.
Minnesota Society of Certified Public Accountants
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