Minnesota Department of Revenue is committed to engagement amid change
Advocacy
Lee Ho, Minnesota Department of Revenue deputy commissioner | October/November 2022 Footnote
Editor's note: Updated September 30, 2022
At the Department of Revenue, change is a fact of life. Even in so-called normal times, state and federal law changes — along with leadership transitions, advancing technology, and Minnesota’s evolving economy, population and workforce — keep life interesting.
Today, I want to discuss some recent changes at our agency. Former Revenue Commissioner Robert Doty left the department in September to become CFO and vice president of infrastructure at the Science Museum of Minnesota. I will serve as temporary commissioner until a successor is named.
During Robert’s two years as commissioner, the department, our partners and the rest of Minnesota navigated together through some unique — and uniquely challenging — times.
Revenue played a key role in distributing COVID-19 aid and providing tax relief for Minnesotans and our state’s businesses, cities and counties. These measures included American Rescue Plan Act (ARPA) funds, COVID-19 business relief payments and Tribal Relations Grants, and Frontline Worker Payments.
Through it all, we’ve relied on Revenue’s dedicated team of talented public servants — and our partners like the MNCPA — to ensure the tax system continues to work for Minnesotans. And, in my temporary role as commissioner, I know everyone will continue to do just that.
We will miss Robert and his boundless energy for public engagement with all our customers, even as we benefit from the team that he assembled to strengthen this aspect of our agency mission.
As part of that initiative, we created a new Office of Public Engagement earlier this year, led by Public Engagement Director Audel Shokohzadeh. The new office will continue building relationships with groups like the MNCPA and will also engage with community leaders and underrepresented populations to promote equity in the state tax code. This effort:
- Helps us listen, learn and respond to concerns or questions from communities affected by — but rarely engaged around — state tax policies.
- Ensures equity is part of the conversation when policymakers look at new and existing tax laws, policies and proposals.
- Complements our existing outreach and education efforts for taxpayers, communities, the MNCPA and other partners.
Thoughtful public engagement allows more people to have a voice in discussions on tax policies that impact them. Their input will help policymakers develop equity-driven proposals to improve our tax laws, policies and procedures to better serve all Minnesotans.
Focus on conformity
As we at Revenue prepare for next year’s legislative session and filing season, federal conformity is an early focus. Currently, Minnesota does not conform to several federal provisions that may affect your business, personal or clients’ returns for tax year 2022 and earlier.
One result is that Minnesota does not align with federal law on the treatment of forgiven student loan debt under the American Rescue Plan Act (ARPA). Without a law change, taxpayers with student loan debt discharged under President Joe Biden’s action in August will have to add back that amount on their Minnesota tax return.
ARPA also excluded funds from some COVID-19 business relief programs from federal income tax. Under current law, taxpayers who excluded funds from these programs on their federal return must add it back for Minnesota tax purposes for the year the income was received.
It seems likely the Legislature will pass — and the governor will sign — a conformity bill before the end of next year’s legislative session. If so, we will provide updates and guidance through our website and email bulletins. For the latest information:
We realize conformity issues present special challenges to you as tax professionals, and we’re here to help as much as possible. On behalf of everyone at Revenue, thank you for your partnership.
Lee Ho is deputy commissioner of the Minnesota Department of Revenue.
