Legislative update: Tax proposals, additional pathways and legislative deadlines
March 18, 2025 | Corey Butler
The MNCPA's latest Legislative Digest Live session covered a range of important legislative developments at the Minnesota State Capitol. The discussion focused on several critical issues, including Gov. Tim Walz’s proposed budget, additional pathways to CPA licensure legislation, a proposed tax on professional services, the state's economic forecast and upcoming legislative deadlines.
Watch the March 17 Legislative Digest Live (requires member login)
Sales tax on professional services
Senate File 2374 proposes extending the sales tax to accounting services. The language in the bill is broad and vague, creating significant uncertainty for CPAs and their clients. The bill lists specific services like payroll, bookkeeping and auditing that would be subject to the sales tax, even though many of those are entirely or almost entirely consumed by businesses. Business to business sales tax is not part of the proposal.
This bill
has a hearing Wednesday in the Senate Taxes Committee. MNCPA members are encouraged to reach out to their legislators to express concerns about the potential tax on professional services.
There is not a House companion bill at this time.
Pathways, mobility bill update
Three states have already passed similar laws to what the MNCPA is proposing at the Minnesota Legislature, and more than 20 other states are in
various stages of changing their laws. The Senate moved
Senate File 1536 forward, and the House heard
House File 1458 on Tuesday, March 18, in committee. The House bill was unamiously supported on a voice vote and moved to the House Ways and Means Committee. The MNCPA remains positive about these bills becoming law.
Read more about the Senate hearing
Budget, legislative deadlines
Another key focus of Legislative Digest Live was the state's economic forecast, which showed a significant reduction in the projected budget surplus for the next biennium. The state went from an $18 billion surplus in 2023 to a projected $6 billion deficit for the 2028-29 biennium, leaving legislators with limited wiggle room as they work to finalize the 2026-27 budget.
Underlying all of these discussions are the upcoming legislative deadlines. With the first and second deadlines now combined on April 4, and the third deadline on April 11, continued engagement with lawmakers is paramount to ensure the
MNCPA's priorities remain top of mind as the session enters its final stretch.
This recap was produced using artificial intelligence.
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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