Today, Governor Mark Dayton signed HF 79/SF 47 into law. This legislation adopts most federal tax changes made for the 2010 tax year and will provide $13 million in state tax reductions to Minnesotans. He was joined at a bill signing ceremony by Senator Julianne Ortman, Representative Greg Davids, Senator John Marty and Representative Paul Marquart.
Notably, this action extends the income exclusion for health insurance to benefits for adult children up to age 26. At the urging of Governor Dayton, it provides state income tax deductions for higher education tuition expenses, classroom expenses for teachers, and deductions to Minnesota businesses for their charitable contributions of used computers. Conforming Minnesota tax law to federal law also streamlines the process and makes it easier for taxpayers to prepare and file state taxes.
The law also authorizes the Minnesota Department of Revenue to release $97 million in business tax refunds that were delayed last year to help Governor Pawlenty balance the State's budget. In February, the governor sent a letter to the Legislature, urging them to adopt this change.
Signing the law, which he urged the Legislature to pass three weeks ago, Governor Dayton said, "This bill gives $13 million in tax cuts to Minnesota college students and their parents, teachers, businesses, and other taxpayers. I am also pleased that the Legislature included my recommendation to resume our refunds to businesses for the sales tax exemption on their capital purchases. Those refunds will give Minnesota businesses money they can use to put more Minnesotans to work."