Video & Transcript Research : 'conforming changes'
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MN
Transcript Highlights:
- details the federal conformity details the federal conformity provisions<00:02:39.560>
and amendment is the federal conformity amendment is the federal conformity article<00:04:24.760>- the um conformity and non-conformity items that are contained in the federal conformity article.
- <00:04:37.560>
and um which detail the um conformity and um which detail the um conformity - in the federal conformity article. in the federal conformity article.
NM
New Mexico 2026 Regular Session
House - Chamber Meeting Feb 4th, 2026 at 11:20 am
New Mexico House Floor Meeting
Bills:
HB95, HB111, HJR1, HM7, HM17, HM4, HM22, HM3, HM11, HM14, HM15, HM21, HM34, HB2, HB32, HB33, HB61, HJM2, HM23, HM24, HM26
Keywords:
HB95, additional judgeship, district court, judicial district, First Judicial District, Second Judicial District, district judges, court administration, judicial staffing, caseload, access to justice, New Mexico courts, judiciary, judge vacancy, court backlog, state courts, water law, state engineer, civil penalty, compliance order
TX
Bills:
SB 2, SB 3, SB 10, SB 16, SB 5, SB 9, SB 7, SB 17, SB 4, SB 19, SB 54, HB23, HB17, HB16, SB19, SB53, SB54, HB16, HB17, HB23, HB27, SB9, SB7, SB17, SB4, SB2, SB3, SB10, SB16, SB5
Keywords:
flash flood, flood warning, outdoor warning siren, emergency alert, disaster preparedness, flood mitigation, Hill Country floods, Texas Water Development Board, municipalities, counties, local government mandate, public safety, grant program, backup power, weather siren, emergency management, flood-prone area, warning system, real property theft, real property fraud
TX
Transcript Highlights:
- We'll be changing those through conference.
- It wasn’t really a change.
- I hope you know, tell them that we’re changing gears.
- No, none of the Texas Ethics Committee rules are changed.
- It currently has not changed.
Bills:
SB 2, SB 3, SB 10, SB 16, SB 5, SB 9, SB 7, SB 17, SB 4, SB 19, SB 54, HB23, HB17, HB16, SB19, SB53, SB54, HB16, HB17, HB23, HB27, SB9, SB7, SB17, SB4, SB2, SB3, SB10, SB16, SB5
Keywords:
flash flood, flood warning, outdoor warning siren, emergency alert, disaster preparedness, flood mitigation, Hill Country floods, Texas Water Development Board, municipalities, counties, local government mandate, public safety, grant program, backup power, weather siren, emergency management, flood-prone area, warning system, real property theft, real property fraud
TX
Transcript Highlights:
- residence address that is not current and the immediate action after the registrar's receipt of certain change
Bills:
SB 2, SB 3, SB 10, SB 16, SB 5, SB 9, SB 7, SB 17, SB 4, SB 19, SB 54, HB23, HB17, HB16, SB19, SB53, SB54, HB16, HB17, HB23, HB27, SB9, SB7, SB17, SB4, SB2, SB3, SB10, SB16, SB5
Keywords:
flash flood, flood warning, outdoor warning siren, emergency alert, disaster preparedness, flood mitigation, Hill Country floods, Texas Water Development Board, municipalities, counties, local government mandate, public safety, grant program, backup power, weather siren, emergency management, flood-prone area, warning system, real property theft, real property fraud
AZ
Transcript Highlights:
- Just some conforming changes need to be made. Perfect. Thank you.
- Just some conforming changes need to be made. Perfect. Thank you, sir.
- This is just making some conforming changes. It's a good amendment.
- Most states have already conformed or have finished whatever conformity package they have, and we still
- But who really benefits from this tax conformity bill? Thank you for that question.
Summary:
The House opened with prayer, the Pledge of Allegiance, guest introductions, and a proclamation recognizing February 2026 as American Heart Month, with Representative Willoughby emphasizing CPR, AED awareness, and cardiac emergency preparedness. Members also welcomed school visitors and representatives of the Arizona Fairs Association, and the chamber handled routine business including committee assignments, first and second readings, and referral of bills.
The main floor action occurred in Committee of the Whole, where the House considered several bills and amendments. HB 2016, HB 2133, HB 2223, HB 2459, HB 2501, and HB 2785 were all advanced with do-pass recommendations, with amendments adopted on HB 2016, HB 2133, HB 2223, and HB 2785. HB 2785 drew extended debate over tax conformity and the governor’s tax forms: supporters said it would codify federal tax conformity, preserve filing certainty, and prevent taxpayers from having to amend returns, while opponents argued it would mainly benefit corporations and wealthy taxpayers and lacked a clear funding plan. HB 2785’s committee amendment was adopted by division vote, 31-22.
After the Committee of the Whole report was adopted, the House moved to third reading and passed HB 2029, HB 2120, HB 2126, and HB 2131. HB 2045 failed on third reading, and a later motion to reconsider that failure also failed. The chamber then entered a period of personal privilege remarks about legislative process, representation, and Black History Month, followed by committee announcements and adjournment until the next day.
MN
Transcript Highlights:
- ,<00:30:58.600>
and <00:30:58.720>restrictions changes, and restrictions changes, and restrictions - judiciary allow us to allow the changes judiciary allow us to allow the changes to<00:41:57.000>
- We also have some changes on grants that were extended, Mr.
- 54:56.680>
have <00:54:56.840>been technical changes that have been technical changes that - Uh we have some few changes those areas.
KY
Transcript Highlights:
- We're just clarifying, making those technical changes to conform with our technology.
- We're just clarifying, making those technical changes to conform with our technology.
- We're just clarifying, making those technical changes to conform with our technology.
- We're just clarifying, making those technical changes to conform with our technology.
- We're just clarifying, making those technical changes to conform with our technology.
Keywords:
Convene 00:00
Motions, Petitions, and Communications 04:28
Election and Swearing In of Constitutional Officers 04:35
Introduction of New Bills and Resolutions 06:51
HR 1 08:08
HR 2 08:40
HR 3 17:11
Impeachment Petitions reported 18:33
Introduction of New Bills and Resolutions 20:27
Stand at Ease 20:54
Introduction of New Bills and Resolutions 28:30
Adjournment 33:05, 958, all
Summary:
The Kentucky House convened for the opening of the 2026 regular session, with prayer, the Pledge of Allegiance, roll call, and a declared quorum of 100 members present. The House then excused absent members and suspended the rules to allow co-sponsorships and vote modifications to be filed. It also elected House staff constitutional officers by acclamation, including the chief clerk, deputy clerk, sergeant at arms, chief doorkeeper, enrolling clerk, cloakroom keeper, and janitor, followed by the oath of office.
Members introduced and adopted House Resolutions 1, 2, and 3. House Resolution 1 established the 2026 House membership. House Resolution 2 adopted the House rules for the session, with changes reflecting the new temporary building, removal of COVID-related provisions, elimination of remote and alternative voting, shortening motions/petitions/communications time from 30 to 15 minutes, deleting guest introductions and gallery references, requiring only one signed jacketed bill copy, clarifying billbook co-sponsorship procedures, deleting consent orders and pairing rules, and updating chamber-access and lobbying restrictions. Some members objected that the changes reduced transparency and public access, and one member asked that the 15-minute limit be kept at 30 minutes, but the resolution was adopted. House Resolution 3 invited pastors of Frankfurt churches to open sessions with prayer; one member asked that it be broadened to include people of all faiths and beyond Franklin County, but it was also adopted.
The House then reported interim communications, including citizen impeachment petitions filed against Supreme Court Justice Pamela Goodwine and Ballard County Jailer Eric Cppus. Members were reminded of a mandatory ethics meeting the next day. The clerk reported the first batch of filed bills and resolutions, including House Bill 11 on independent school districts and House Bills 12 through 34 on topics such as legislative privacy, income tax, rural hospital funding, Medicaid and Medicaid expansion, school employee payments, firearms, reproductive health and privacy, employment schedules, cancer treatment coverage, workers’ compensation for first responders, savings accounts, education opportunity accounts, leave from employment, criminal procedure, home purchases, FNF devices, data privacy, and death benefits, along with House Resolutions 4 through 6. The House then adjourned until 2 p.m. on January 7, 2026.
AZ
Arizona 2026 Regular Session
01/15/2026 - House Republican Caucus Calendar #1
Transcript Highlights:
- So there's a concept called simple conformity and then full conformity.
- That we always conform to that by virtue of what we call simple conformity, unless you actively decouple
- And so the department always assumes simple conformity.
- So DOR always assumes simple conformity.
- You need explicit statute to conform to those.
Summary:
The caucus focused on HB 2153, a tax conformity bill that would align Arizona statute with the Internal Revenue Code as of January 1, 2026, including retroactive provisions affecting tax year 2025. Staff explained that the bill excludes three federal provisions from H.R. 1: the additional $6,000 senior deduction, the increase in the state and local tax (SALT) deduction to $40,000, and the deduction for interest on new car loans. It also adds several Arizona-specific provisions, including a $6,000 deduction for certain retirement distributions for taxpayers age 65 or older, a $6,000 deduction for Roth IRA contributions, an increase in the dependent tax credit from $100 to $125, and a deduction for child and dependent care expenses above the federal credit. JLBC’s fiscal note was cited as a negative $441.3 million in year one, declining over the next two years.
Chairman Livingston and other Republican members argued the bill was needed immediately because the Department of Revenue had already issued tentative forms assuming full conformity, creating confusion for taxpayers and businesses. They said the state needed a signed law as soon as possible to avoid amended returns, inconsistent filing rules, and uncertainty for small businesses. Livingston emphasized that the bill was intended to protect small businesses from having to keep two sets of books and said he was advising taxpayers not to file until the issue was resolved. Members also discussed the practical impact on small businesses, citing testimony that Arizona has about 700,000 small businesses employing well over a million people.
Several exchanges clarified the difference between the governor’s November direction to the Department of Revenue and the bill before the committee. Staff explained that DOR normally assumes “simple conformity” and that the governor’s directive attempted to add “below-the-line” deductions through a worksheet, but that those items still require statutory authorization. Members said the governor’s action was confusing and characterized it as a press release rather than binding law. The committee also discussed the child care provisions, describing them as a federal-style deduction Arizona has not previously adopted and as one of the main new benefits in the bill. The caucus ended without a vote, and members were told the floor would begin at 10 a.m.
AZ
Transcript Highlights:
- If the legislature does not conform or conforms with additional changes, ADR must then supplement the
- conform to everything above the line, and then the other changes were made because of an executive order
- . ...because we did conform to everything above the line, and then the other changes were made because
- This bill doesn't change what happened this year. It doesn't change what happens every year.
- DOR always does assume conformity, so... ...it doesn't change what happens every year.
Keywords:
income tax, conformity, Arizona Revised Statutes, taxpayer, federal regulations, firefighters, occupational disease, workers compensation, cancer presumption, police officers, hazardous duty, SB1270, Arizona retirement system, public safety personnel, defined contribution plan, correctional officers, corrections officers, retirement contributions, supplemental contributions, retention incentive
Summary:
The Senate Finance Committee approved the January 26, 2026 minutes and then heard several bills dealing with tax, retirement, and property assessment issues. SB 1215, as amended, was described as a technical “comma bill” that reorganizes the list of firefighter cancer conditions presumed work-related and removes mistakenly included peace officer language; it passed 6-1. SB 1180 would codify Arizona Department of Revenue’s practice of assuming federal conformity for above-the-line income tax items when preparing forms, with supplemental instructions if the legislature later acts differently; it passed 7-0 after discussion about whether it would affect executive-ordered changes. SCR 1028, a voter-referral measure to narrow the statutory exception allowing agencies to set certain fees and assessments without a two-thirds vote, drew sharp debate over majority rule versus limits on delegated fee authority and passed 4-3.
The committee also advanced SB 1292, which clarifies that the Public Safety Personnel Retirement System’s 5% ownership cap applies only to publicly traded corporations; PSPRS said the change would avoid compliance problems and unnecessary costs, and it passed 7-0. SB 1294, restoring county assessors’ authority to prorate property values for property destroyed in any manner while preserving a five-year classification benefit only for property destroyed by verifiable accident, passed 6-1. SB 1430, the annual tax corrections act, passed unanimously after DOR said it mainly removes redundant language, fixes a cross-reference, and codifies current practice.
The committee then considered SB 1270, which would let CORP employers make optional supplemental retirement contributions of up to $5,000 to Tier 3 correctional officers and related employees at specified service intervals. Supporters from the FOP said it is a flexible retention tool for hard-to-staff correctional jobs, while some members worried it could add costs for counties and not solve the underlying retention problem; it passed 6-1. Finally, SB 1290, which requires advance notice and inspection reports for certain property inspections and bars repeat agricultural inspections for three years, drew strong support from farm groups and strong opposition from county assessors, who argued it would create costs, limit their ability to verify new construction, and interfere with annual valuation duties. The bill passed 4-2 with one member not voting, and the committee adjourned.
AZ
Transcript Highlights:
- It cannot be changed because we know how hard it is to change revenue law in Arizona.
- Cannot be changed because we know how hard it is to change revenue law in Arizona.
- What this bill does is conform...
- What this bill does is conform our tax policy to the changes that President Trump and the Congressional
- The governor has proposed half conformity. DOR has a form that shows full conformity.
Summary:
The Senate convened with prayer, the Pledge of Allegiance, attendance, and routine journal and guest items, then moved into the Committee of the Whole to consider bills on the calendar. The main substantive item was SB 1106, a tax conformity bill tied to federal tax changes. Senators debated it extensively, with supporters arguing it would provide tax relief, certainty for taxpayers filing returns, and pro-growth benefits for workers and businesses, while opponents said it would reduce state revenue, favor wealthier taxpayers and corporations, and should be handled in broader budget negotiations. Several senators also objected to provisions they said were added late, including child care, senior deductions, and education-related tax credit language. The bill was ultimately passed in open session by a vote of 17 ayes, 12 nays, and 1 not voting, and was transmitted to the governor.
After SB 1106, the chamber adopted the Committee of the Whole report and then heard a proclamation in support of law enforcement, read by Senator Bolick and signed by Senate leadership. The proclamation cited officer safety, assaults, fatalities, and mental health concerns, and called for continued support, equipment, training, and resources for law enforcement. Senators spoke in favor of honoring police and “backing the blue.”
The Senate also handled routine floor business, including a message from the House, transmission of SB 1106 to the governor, and a long list of first-reading bill introductions and committee references covering topics such as public safety, health and human services, education, finance, elections, immigration, border issues, and appropriations. The meeting concluded with committee announcements and adjournment until Tuesday, January 20, 2026.
KY
Kentucky 2025 Regular Session
Administrative Regulation Review Subcommittee (9-9-25)
Transcript Highlights:
- It's just an unfortunate oversight from a lack of staff or staff changes and leadership changes.
- <00:18:59.520>
to 8030 is being amended to conform to 8030 is being amended to conform to - <00:19:15.600>
to 8080 is being amended to conform to 8080 is being amended to conform to - and therefore a lot of the changes and therefore a lot of the changes affected<00:26:14.240>
- <00:26:25.039>
in what what that has been the change in what what that has been the change
Keywords:
:54 – Board of Pharmacy
2:00 – Board of Social Work
3:44 – Board of Licensure for Occupational Therapy
4:43 – Board of Registration for Professional Geologists
7:27 – Board of Imaging and Radiation Therapy
8:33 – Board of Emergency Medical Services
10:38 – Department of Fish & Wildlife Resources
17:37 – Transportation Cabinet
18:37 – Department of Education
25:00 – Department of Workplace Standards
27:06 – Cabinet for Health & Family Services, 958, all
Summary:
The Administrative Regulation Review Subcommittee met with a quorum, approved the minutes, and then reviewed a series of agency regulations, most of which had staff-suggested amendments. The Board of Pharmacy regulation on remote prescription processing was amended to make grammatical and KRS Chapter 13A compliance corrections, and the Board of Social Work regulation on continuing education, telehealth training, waivers, and related fees was deferred at the agency’s request. The Occupational Therapy Compact rule update and the Professional Geologists fee increase regulation both received staff amendments and were approved, with the geologists’ board explaining the increases were driven by rising oversight costs and declining revenue.
The committee also reviewed emergency regulations from the Board of Medical Imaging and Radiation Therapy, the Board of Emergency Medical Services, the Transportation Cabinet, and the Department of Workplace Standards. The EMS package covered licensing classifications, compliance audits, ambulance service rules, and electronic forms; the Transportation Cabinet’s emergency rule established procedures for street-legal special purpose vehicles; and Workplace Standards’ emergency rules updated Kentucky requirements to align with federal standards and House Bill 398, including shortening the discrimination complaint filing deadline from 120 days to 30 days and adjusting appeal procedures. Staff amendments were approved where offered, and members asked several clarifying questions about the rationale and effect of the workplace and EMS changes.
The Department of Fish and Wildlife Resources explained rules on aircraft and drone use in taking wildlife and on reciprocal hunting and fishing agreements with neighboring states. The agency said the drone restriction was intended to align with federal law and address hunter complaints, while the reciprocal agreement rule was a cleanup of older agreements that had lapsed or been overlooked; the committee deferred the wildlife regulation 301 KAR 2:031 at the agency’s request. The Department of Education also presented multiple KHSAA-related and standards updates, including academic eligibility, sports timing, health and physical education standards, and career studies/financial literacy standards; staff amendments were approved, and members questioned the athletic forms and the designation of KHSAA as the state’s athletic agent. Finally, the Cabinet for Health and Family Services presented emergency regulations to support a pediatric teaching hospital expansion and related certificate-of-need changes, which the agency said were aimed at improving pediatric and neonatal access to care; staff amendments were approved, and the committee concluded by setting its next meeting for October 13 at 1:00 p.m.
MN
Minnesota 2025-2026 Regular Session
House Health Finance and Policy Committee 4/15/26
Health Finance and Policy
Transcript Highlights:
- . conformity. conformity.
- This is also part of federal conformity. conformity. conformity.
- This isn't directly related to federal conformity, but it is related to the changes in HR 1 and provider
- these changes are gone. these changes are gone.
- I change to nay as well. Representative Carr changes from I to nay. Bonner changes from I to nay.
Keywords:
HF4401, Minnesota Medical Assistance, dental reimbursement, dental rates, critical access dental providers, Medicaid dental, MinnesotaCare, managed care plans, county-based purchasing plans, fee-for-service, oral health access, safety-net clinics, federally qualified health centers, rural health clinics, Indian health services, state-operated dental clinics, low-income patients, children's dental care, provider reimbursement, dental access
MN
Minnesota 2025-2026 Regular Session
Committee on Judiciary and Public Safety - 01/27/25
Judiciary and Public Safety
Transcript Highlights:
- But the idea of this change is to be in conformity with what our courts held was the law of Minnesota
- But the idea of this change is to be in conformity with what our courts held was the law of Minnesota
- The idea of this change is to be in conformity with what our courts held was the law of Minnesota on
- The changes to this section are meant to bring it into conformity mostly with uniform law, the Uniform
- The changes to this section are meant to bring it into conformity mostly with uniform law, the Uniform
MN
Transcript Highlights:
- <00:16:14.959>
Um conforming changes or updates bill. - Um conforming changes or updates bill.
- <00:16:45.040>
the conforming changes um to establish the conforming changes um to establish - and conforming changes for programs and conforming changes for programs and services<00:17:16.160
- These conforming changes 2024 sessions.
MN
Transcript Highlights:
- There have not been significant federal tax changes since then, so we are mostly in conformity with federal
- There have not been significant federal tax changes since then, so we are mostly in conformity with federal
- We had two conformity bills, and the state had two conformity bills in 2023.
- How long have we not conformed, and what would it take to conform? Mr.
- How long have we not conformed, and what would it take to conform?
Summary:
The House Tax Committee met for an organizational and orientation session. Members and staff introduced themselves, with several lawmakers noting their districts, business backgrounds, and interest in tax policy. Chair Greg Davids then opened the committee’s first substantive item: a presentation from House Research and House Fiscal staff on how the committee works and on basic tax concepts.
House Research staff Sean Williams and Chris Clayman explained their roles in drafting bills and amendments, writing bill summaries, answering legal and policy questions, and modeling tax proposals. They also described the committee’s key documents, including partisan and nonpartisan bill summaries, revenue estimates, fiscal notes, and supporting materials. Their presentation covered core tax concepts such as tax bases, rates, deductions, exemptions, credits, tax revenues, and tax expenditures, emphasizing that tax expenditures function like spending through the tax code and are reviewed by a legislative commission.
The staff then reviewed Minnesota’s major taxes, focusing on the individual income tax and business taxation. They explained that Minnesota’s individual income tax starts with federal adjusted gross income, then applies state additions, deductions, subtractions, and credits, and that the state’s income tax brackets and rates are set separately from federal law. They also outlined the difference between corporate franchise taxes for C corporations and individual income tax treatment for pass-through entities, and discussed how the federal SALT cap led Minnesota and other states to adopt pass-through entity taxes so businesses could preserve federal deductibility of state taxes. Members asked questions about a duplicate “marriage penalty” entry on a slide, the purpose of Minnesota’s marriage penalty credit, comparisons with other states, and the timing and effect of the pass-through entity tax; staff answered that the duplicate was a mistake, the credit offsets bracket-related marriage penalties, and the pass-through entity tax was adopted in response to the federal SALT cap.
MN
Minnesota 2025-2026 Regular Session
Conference Committee on H.F. 4188 - Omnibus Commerce and Consumer Protection - Part 1 - 05/13/26
Transcript Highlights:
- Um, section 50 makes a conforming change to credit services organization.
- Um section 50 makes a conforming Um section 50 makes a conforming conforming<00:04:11.160>
change - to credit services conforming change to credit services organization.<00:04:13.800>
And <00:04 - >
that <00:04:17.640>relate <00:04:18.120>to make conforming changes that relate - to make conforming changes that relate to repealing<00:04:19.799>
um <00:04:19.959>the
Summary:
The committee took up H.F. 4188, the Commerce and Consumer Protection Policy Omnibus, and moved through a series of agreed-upon motions to adopt various House and Senate language articles and sections. The adopted provisions covered a wide range of topics, including residential mortgage loan servicing standards, student loan borrower protections, rental home marketplace guarantees, group coverage cancellation, limited lines travel insurance, insurance lead generators, collection agency and credit services organization definitions, proof of identification requirements, scrap metal copper licensing, technical changes to ASTM references and report filings, securities-related provisions, unclaimed property issues involving virtual currency and funeral prepayment funds, repeal of the prescription drug affordability advisory council, reinsurance program changes, and health insurance reporting and oversight provisions. Most motions were adopted without opposition after brief staff explanations and member encouragements to vote yes.
In the health-related sections, the committee adopted language requiring insurers and nonprofit health service plan corporations to notify the Commissioner of Commerce about significant enrollment increases, expanding access to all-payer claims data for oversight, and requiring the sharing of PBM annual transparency reports with the Commissioner of Health. The committee also adopted language on artificial intelligence in utilization review, initially defining AI and prohibiting exclusive reliance on AI for adverse coverage determinations. Representative Elkins then offered an amendment to remove the specific AI definition and replace it with broader language referring to automated processing, arguing that technology-neutral drafting is more durable and that a human must remain in the loop for coverage denials; the amendment was adopted.
After the agreed-upon items were completed, members indicated the chairs would huddle to work on the remaining issues and return after recess. The meeting then recessed to the call of the chair.
FL
Florida 2026 Regular Session
FL House Floor Session - 2026-05-12 (10:00AM Session)
Florida House Floor Meeting
Transcript Highlights:
- Senate Bill 2514E makes various changes to education statutes to conform with the pre-K-12 education
- Senate Bill 2514E makes various changes to education statutes to conform with the pre-K-12 education
- Senate Bill 2516E makes various changes to the education statutes to conform to the higher education
- Senate Bill 2518E makes various changes to statute to conform with the health and human services budget
- Senate Bill 2518E makes various changes to statute to conform with the health and human services budget
MN
Minnesota 2025-2026 Regular Session
Gov. Tim Walz's tax policy proposals heard in House Taxes Committee 4/23/26
Transcript Highlights:
- So, you've heard a lot on federal conformity, but we are a static conforming state, which means we are
- <00:10:45.720>
So, <00:10:46.480>the <00:10:47.480>conformity The conformity - So, the conformity for what you see here with the governor's proposal on conformity is that first line
- But the other thing is it is coming back. of this on conformity, whether or not of this on conformity
- ,<00:52:54.600>
whether have to be made in conformity, whether have to be made in conformity
Summary:
The committee heard testimony on House File 5055, the governor’s supplemental tax budget. Commissioner of Revenue Paul Marquart outlined the proposal as a balanced budget package that would leave a positive bottom line in the current biennium and beyond. He emphasized family-focused tax relief, especially a new refundable young child credit for children ages 0 to 4, which would provide up to $3,000 for one child or $6,000 for two or more, benefit about 104,000 families, and phase out at higher incomes. He also described federal conformity changes, including updates to business interest deductions, dependent care credits, and Section 179 expensing, along with omitted federal items such as research expensing and opportunity zones due to cost and policy concerns.
Marquart also defended broader tax modernization proposals, including expanding the sales tax to selected consumer services such as accounting, banking, brokerage, and legal services while lowering the statewide sales tax rate, and creating a social media tax on consumer data collection that would fund an AI readiness special revenue fund rather than the general fund. He said these changes would make the sales tax less regressive and better aligned with the modern economy. Additional provisions mentioned included a gun-related gross receipts tax on firearms and ammunition, cannabis tax technical changes, historic structure rehabilitation conformity, and added auditors for tax compliance.
Testimony from outside groups was mixed. Nan Madden of the Minnesota Budget Project supported the governor’s approach as a response to federal tax and spending changes, praised the decision not to conform to opportunity zones or federal no-tax-on-tips/overtime provisions, and urged even stronger revenue measures. Brian Lake of the Minnesota State Bar Association strongly opposed the proposed sales tax on consumer legal services, arguing it would burden low- and middle-income people in sensitive cases and create unfairness when individuals litigate against the state. Tanner Fritsinger of the Minnesota Association of Professional Employees supported the sales tax base expansion and the social media tax as ways to broaden revenue without raising the base rate. The committee chair thanked the commissioner and then began hearing public testimony, with additional testifiers queued up.
TX
Transcript Highlights:
- Amortization is a process whereby a municipality changes the zoning in an area in which a legal conforming
- Uh, I don't necessarily understand non-conforming use.
- So then this business never changes and never closes down.
- Um, sure, I would say a lot of changing conditions.
- Areas that we need to get to that have changed so dramatically or not changed and still have old zoning
Bills:
HB24