Legislative update: Tax on professional services, pathways to CPA licensure and Capitol chaos
February 5, 2025 | Corey Butler
The MNCPA held its first
Legislative Digest Live session of 2025, providing an update on the first two weeks of the Minnesota legislative session. Geno Fragnito, MNCPA government relations director, covered several key issues.
Tax on professional services
Gov. Tim Walz has proposed taxing a wide range of professional services, including accounting, legal and financial services. This is framed as a way to "modernize" the tax code and lower the overall sales tax rate. However, the proposed rate reduction is minimal, and the tax on services would be a significant revenue raiser for the state, estimated at $250 million over the next two years.
The MNCPA is strongly opposed to this tax on professional services and is working with a coalition of other groups to fight it. MNCPA members are encouraged to
contact your legislators to voice their opposition. Grassroots advocacy is crucial; the democrat tax chairs in both the House and Senate appear to support the governor's proposal. The Republican tax chair in the House opposed a services tax.
Pathways to CPA licensure
The MNCPA will be reintroducing legislation to create additional
pathways to CPA licensure, including a bachelor's degree with two years of work experience, or a master's degree with one year of experience. This builds on the MNCPA's pioneering work in this area, which has now inspired more than 35 other states to consider similar measures.
The Minnesota Senate bill will again be led by Sen. Jordan Rasmusson, while the House version will have a new lead author, Rep. Scott Van Binsbergen, who previously served as a public member on the Minnesota Board of Accountancy. The Senate bill will be introduced in the next two weeks, with the House version following once that chamber is organized, likely in March.
Capitol chaos
The start of the 2025 legislative session has been anything but smooth. Neither the Minnesota House nor Senate has had majorities to conduct business for the first two weeks, due to a combination of vacancies and eligibility issues.
This has delayed the introduction of bills and the committee process in the House. This delay could mean the Legislature will not finish its work on time this year, and a special session is likely. This uncertainty creates challenges for the MNCPA's advocacy efforts, but the MNCPA remains engaged and focused on advancing its key priorities.
Overall, the MNCPA is closely monitoring the tax on services proposal, continuing to push for CPA licensure reform, and navigating the chaotic start to the legislative session. The MNCPA will keep members updated through future Legislative Digest Live events and other communications.
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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