SF3132 would change Minnesota’s individual income tax rate brackets by increasing the dollar thresholds at which each marginal rate applies. The bill keeps the existing top rates in place—5.35%, 6.8%, 7.85%, 9.85%, and 12.45%—but raises the income levels for each bracket for married joint filers, single filers, and head-of-household filers. In practical terms, more income would be taxed at lower rates before taxpayers move into higher brackets.
The bill also updates the inflation-adjustment provision for those brackets. It changes the statutory year used for annual indexing from tax year 2019 to tax year 2025, while preserving the commissioner’s authority to adjust bracket amounts annually and round them to the nearest $10. The bill applies to taxable years beginning after December 31, 2024 for the bracket changes, and after December 31, 2025 for the inflation-adjustment update.
Impact
The bill amends Minnesota Statutes section 290.06, subdivisions 2c and 2d, which govern the state’s individual income tax rate schedules and inflation indexing. It would not alter the number of brackets or the tax rates themselves, but it would raise the bracket thresholds, reducing tax liability for some taxpayers relative to current law and shifting more income into lower-taxed ranges. It also updates the bracket-indexing base year, which affects future annual inflation adjustments administered by the Department of Revenue.
Sentiment
Based on the bill text and available context, the measure appears to be a tax-relief or bracket-modernization proposal rather than a controversial structural tax overhaul. There are no committee transcripts or recorded votes provided, so there is no documented debate or formal legislative sentiment in the available materials. The sponsor list suggests support from multiple senators, indicating at least some interest in revising the income tax brackets.
Contention
The main policy issue likely to draw attention is the distributional effect of raising bracket thresholds: supporters may view it as a way to reduce tax burden and better align brackets with inflation, while critics may question the revenue impact and whether the changes disproportionately benefit higher-income taxpayers. Another possible point of contention is the new 12.45% top bracket threshold and the updated indexing year, which could affect future tax growth and state revenue collections. No specific objections or amendments are shown in the provided record.
Payment rates established for certain substance use disorder treatment services, and vendor eligibility recodified for payments from the behavioral health fund.
Cover Outstanding Vulnerable Expansion-eligible Residents Now Act or the COVER Now Act This bill establishes a demonstration program to allow local governments to provide health benefits to the Medicaid expansion population in states that have not expanded Medicaid. Under the program, local governments may provide coverage for individuals who are newly eligible for Medicaid under the Patient Protection and Affordable Care Act (i.e., the Medicaid expansion population) for a maximum of 10 years, or until their respective states expand Medicaid. The bill provides a 100% federal matching rate for the first three years of program participation. The bill prohibits states from taking certain actions against participating localities, such as withholding funding, increasing taxes, or restricting provider participation. States that violate these requirements are subject to certain funding penalties.