Specific uncodified provision in federal law that relates to provisions of the Internal Revenue Code made inapplicable.
Impact
If enacted, the legislation will impact how Minnesota tax laws are interpreted with respect to federal guidelines. The bill specifically excludes section 530 of Public Law 95-600 from being part of the Internal Revenue Code as it is applied at the state level. This exclusion may affect a variety of tax-related legal discussions and processes, potentially simplifying compliance for affected taxpayers. The implementation is set to take effect for taxable years beginning after December 31, 2025.
Summary
HF1183 proposes to amend Minnesota Statutes 2024, specifically section 290.01, subdivision 31. The bill aims to clarify that a certain uncodified provision related to the Internal Revenue Code does not apply to Minnesota state laws. This change is significant as it seeks to refine the interaction between state tax laws and specific federal provisions, ensuring Minnesota's laws are clear in their scope and application.
Contention
There may be notable contentions surrounding HF1183 mainly related to its implications for employee classification. As the bill amends a provision of federal law, it could lead to debates over how such exclusions could affect employee taxation and benefits at the state level. Stakeholders may express concerns or support based on how the changes influence tax liabilities for businesses and individuals alike.
Various policy and technical changes made to individual income and corporate franchise taxes, fire and police state aids, tax-related data practices provisions, and other miscellaneous taxes and tax provisions.