the 2014 LEGISLATIVE
session learn more about new legislation passed this year that may affect your business
Greater Mankato Growth
Minnesota’s Legislature adjourned in May after passing a series of significant pieces of legislation that will impact business. Read on to get an overview of some of the key pieces of legislation that businesses need to know about. SESSION OVERVIEW The 2014 legislative session marked a dramatic departure from the last 15 years where legislators often confronted large budget deficits. This year, lawmakers gaveled into session with news that the state had a surplus of $1.2 billion. Ultimately, the Legislature passed tax reductions totaling $550 million, new cash spending of $500 million, a bonding bill totaling $846 million, and put $150 million into the state’s reserve fund. The Legislature also enacted a number of policy measures including an increase in the minimum wage, a bill providing new workplace protections for women and a bill legalizing medical marijuana.
34 July 2014 • MN Valley Business 1 •• JANUARY 2013 • MN Valley Business
TAX The Legislature enacted several significant tax measures including: Business Tax Changes • Repeal of the three business to business sales taxes enacted in 2013 (storage and warehousing, equipment repair labor and telecommunications equipment). • Elimination of the need to businesses to maintain separate records for their federal and state income taxes. • Delays enactment of the up-front exemption for sales tax on capital equipment from September 2014 to July 2015. • June accelerated sales tax was modified so that fewer retailers are affected and the advanced payment is smaller. Personal Tax Changes • Federal tax conformity. • Repeal of the gift tax passed in 2013. • Increase in the estate tax exemption from $1 million to $2 million and elimination of the estate tax “bubble.” • One year increase in the homestead credit, renter property tax credit and agricultural homestead market value credit.