Bill > HF3612

This bill prohibits the state of Minnesota from withholding federal income tax from the pay of state employees. Currently, under Minnesota Statutes, the commissioner of management and budget (the state official responsible for managing state finances) or the head of an individual state agency is authorized to withhold federal income tax from state employee salaries and remit it to the federal government. This bill amends existing law to explicitly forbid this practice, meaning state employees will no longer have federal income tax automatically deducted from their paychecks by the state. The bill also repeals a specific statute (Minnesota Statutes 2024, section 16A.13) that previously outlined the procedures for the commissioner of management and budget to act as an agent for the federal government in collecting these withheld taxes. The changes are effective the day after the bill is officially enacted.

Budget and Finance

https://www.revisor.mn.gov/bills/94/2026/0/HF/3612/