Navigating the shifting legislative landscape: Key issues for Minnesota CPAs
February 17, 2025 | Corey Butler
As the Minnesota legislative session progresses, several key issues have emerged that are of particular importance to the accounting profession as shared at the
most recent Legislative Digest Live. Among these is Gov. Tim Walz’s proposed tax on professional services, which aims to raise $300 million but falls short of covering a future projected $5-6 billion deficit.
The tax on professional services has been a perennial issue, and the MNCPA has been actively working with a coalition of interested parties, including the banking, legal and real estate industries, to oppose this measure. CPAs are encouraged to engage with their legislators to express their concerns about the potential impact of this tax on their businesses and clients.
One argument against the tax on professional services is the potential for it to create an uneven playing field, particularly for small and medium-sized businesses. If the tax is implemented, larger companies have the ability to bring certain services in-house, avoiding additional cost, while smaller firms on main street may not have that luxury. There are also concerns about the consumer services tax expanding in the future to include business-to-business transactions, further exacerbating the issue.
Additional pathways to CPA licensure, automatic mobility
Another significant development is the AICPA and NASBA's announcement
supporting additional pathways to CPA licensure, which aligns with the legislation introduced in Minnesota. The MNCPA proposed pathways bill includes a bachelor's degree with two years of general work experience and a master's degree with one year of work experience, as well as automatic mobility and the repeal of current regulatory authority delegated by the Minnesota Board of Accountancy to NASBA. The repeal would retain control with the BOA and remove NASBA as a regulatory entity in Minnesota.
This shift in the national landscape reflects the growing recognition of the need for more flexible and accessible paths to the CPA credential. The MNCPA has been at the
leader of this issue, and the society’s
CPA Day at the Capitol on Feb. 26 provides an excellent opportunity for members to engage with lawmakers and advocate for these changes.
Proposal to phase out estate tax
Additionally, the Minnesota House Tax Committee is considering a bill that would phase out the estate tax over 10 years, a long-standing issue on the MNCPA's agenda. While there has been limited support for eliminating the estate tax or conforming to the federal exemption in recent years, this new approach may gain traction in the current legislative environment.
The delayed start to the legislative session and the power-sharing agreement in the House have created some uncertainty and skepticism among legislators. However, the MNCPA remains committed to collaborating with lawmakers on these critical issues, ensuring that the voice of the accounting profession is heard and that policies are enacted that support the success of CPAs and their clients.
One of the key challenges facing the Legislature this year is the need to balance the state's budget while also addressing the concerns of various stakeholders. The MNCPA will continue to advocate for solutions that protect taxpayer interests, the accounting profession and the broader business community, while also ensuring that the state's fiscal health is maintained.
As the session progresses, CPAs are encouraged to stay informed, engage with their legislators and participate in events like the MNCPA's CPA Day at the Capitol. By working together, the accounting profession can help shape the policies that will impact their businesses and clients for years to come.
This recap was produced using artificial intelligence.
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Learn more about this CPA pathways initiative
Do you want to learn more about this effort? You can keep up with the evolving conversation by visiting the MNCPA’s webpage about the broadening pathways to CPA licensure initiative.
VISIT CPA PATHWAYS PAGE
Topics: Legislative & Government Affairs, MNCPA Programs & Activities
Corey Butler
Corey Butler is the MNCPA communications manager, working to enhance the professional reputations of members through content, media relations and public affairs. He's been with the MNCPA since 2013. Corey keeps busy outside of the MNCPA spending time with his wife and children, serving on his local school board, volunteering in his community and catching up on long-lost hobbies. Corey enjoys the works of John Steinbeck and Rankin/Bass Productions, and Paul Bunyan, Robin Hood and Santa Claus lore. You may reach him at 952-885-5530 or cbutler@mncpa.org.
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