The Minnesota Capitol is a busy place this time of year
March 19, 2025 | Geno Fragnito
I wanted to share a couple of quick updates from a full week at the Capitol.
Broadening pathways to CPA licensure
The pathways and automatic mobility bill is one step closer to passing.
On March 18,
House File 1458, the MNCPA-sponsored legislation was supported in the House State Government Committee on a unanimous voice vote. It is now moving to the House Ways and Means Committee before, I anticipate, it makes it to the full House for debate.
Watch the House committee hearing
“It’s a bill that addresses the shortages we’ve been having with CPAs here in Minnesota,” said bill sponsor Rep. Scott Van Binsbergen.
Stephanie Markert, CPA, MNCPA member and principal with CliftonLarsonAllen LLP in the Minneapolis office, said passing this bill is critical for the profession’s future and meeting the community’s needs.
“The demand for CPA services is growing while the supplies of CPAs is shrinking,” she told the committee.
This House action follows the Senate advancing the companion bill,
Senate File 1536, from the Senate State and Local Government Committee for
possible inclusion in the omnibus bill.
Watch the Senate committee hearing
Proposed tax on accounting services
Another bill of interest to CPAs received its first hearing in the Senate Tax Committee on March 19.
Senate File 2374 is a bill with several tax law changes but the one I’ll focus on is the proposal by Gov. Tim Walz to tax accounting and other services. The House companion bill,
HF 2473, was introduced on March 17 but has not been scheduled for a hearing in the House Tax Committee.
Extending the sales tax to accounting services is part of the governor’s proposal to lower the sales tax rate and broaden the base; but, in doing so, it would also increase tax collections by the state. SF 2374 as presented is
overly broad and creates significantly more questions than should be part of a new proposed tax law.
Watch the Senate committee hearing and DOR explanation of SF 2374
The MNCPA has submitted written testimony opposing tax on accounting services.
Read the MNCPA letter
Read the letter from a coalition of groups
Topics: Legislative & Government Affairs, Government
Geno Fragnito
Geno Fragnito is the MNCPA government relations director, advocating on behalf of the CPA profession. His days consist of last-minute meeting changes, building relationships with lawmakers, helping CPAs navigate state government, and putting in more than 15,000 steps per day walking the halls of the Capitol. Geno unwinds with a little golf and traveling with his family. If he weren’t a lobbyist, Geno would perfect his cast and be a professional fisherman. Geno can be reached at 952-885-5550 or gfragnito@mncpa.org.
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