Bill > HF3255

This bill addresses taxation during government shutdowns by establishing new restrictions on tax collection and withholding during specific periods of governmental funding gaps. The bill defines a "shutdown period" as beginning on July 1 of an odd-numbered year when legislation appropriating money for general operations of executive agencies, legislative offices, or judicial branch agencies has not been enacted. During such a shutdown period, the bill prohibits the deduction and withholding of taxes on wages, with this prohibition extending ten days beyond the shutdown period. Additionally, the bill prevents the imposition of various consumption taxes (such as those related to sales, fuel, motor vehicle sales, and other specific tax categories) if the taxable activity or transaction occurs during the shutdown period or within three days afterward. The legislation aims to provide financial relief and reduce tax burdens on individuals and businesses during periods of government funding uncertainty, ensuring that no taxes are collected when government operations are temporarily suspended. The bill would become effective the day following its final enactment, applying to future potential government shutdowns in Minnesota.

Budget and Finance

https://www.revisor.mn.gov/bills/bill.php?b=House&f=HF3255&ssn=0&y=2025