Five Things You Need to Know about the End of the Legislative Session
May 24, 2018
- No action was taken on the commercial industrial property tax inflator. In a win for the commercial real estate industry, the legislature did not re-implement the automatic property tax inflator – which was repealed during the 2017 session. Governor Dayton insisted on reinstating this provision. This issue remains a top priority for NAIOP.
- Major legislation was passed in the final hours of session. Key items that were approved included the tax bill with education funding attached, as well as a bonding bill, a pension bill and a supplemental budget bill. Both the bonding bill and supplemental budget bills included school safety funding – another top priority this session.
- On May 23, Governor Dayton vetoed the tax and supplemental budget bills. This didn’t come as a surprise to many, as he had vowed to veto both bills. He had already vetoed an earlier version of the tax bill. He had 14 days from receiving each bill to decide if he will sign or veto them, but took swift action. He has yet to take action on the other bills on his desk.
- Minnesotans’ tax returns next year will likely be complicated. Without federal tax conformity – which was included in the tax bill – 2018 state tax returns will be a lengthy, complex process. Some Minnesotans will face a tax increase. Tax conformity could still be passed in January 2019, but that would not allow adequate time to prepare for the changes before Minnesotans start filing their tax returns.
- Campaign season is in full swing. With every state house seat, congressional seat and all state-wide offices on the ballot this November, many Minnesota candidates are already in campaign mode. August primaries will quickly be upon us, and mid-term elections are not far behind. GOP state representatives will be focused on holding their majority as DFLers try to flip control of the House. No doubt, Minnesota is going to be a state to watch this election cycle.