Baby bonus, social media tax, sports betting squeeze into tax bills
Minnesota tax bill takes its final form
Tax bills are taking their final form at the Minnesota Capitol, and it includes a baby bonus, social media tax and sports betting. FOX 9's Corin Hoggard has the latest.
ST. PAUL, Minn. (FOX 9) - A baby bonus, a first-in-the-nation tax on the biggest social media platforms, universal free tax filing, and even sports betting are all on the table as this year’s Minnesota tax bill takes its final form.
Major tax topics
Popular provisions in both:
Both the House and Senate finished their tax bills this week, and they’ll have floor votes next week.
But they’re very different bills and the kitchen table issues probably won’t get resolved until the last minute.
"I can't make promises," said Rep. Greg Davids (R-Preston), the House GOP taxes chair. "We'll see what the joint targets are."
Even Rep. Davids doesn’t know exactly what to expect in the final bill that’ll bear his name.
Baby bonus
A bigger House:
For now, it includes a $100 baby bonus — a little extra money in the tax return for new parents.
The state’s Catholic leadership has supported the idea while advocating for a bigger child tax credit than the DFL passed in 2023.
"We think it should expand eligibility or increase the size of the credit," said Jason Adkins, executive director of the Minnesota Catholic Conference. "The baby bonus is one way of doing it in a time when budget numbers are really tight."
The House bill also has the state footing the bill for anyone who wants to file their tax returns online.
Senate is social
Taxing big platforms:
But it doesn’t include a big ticket item from the Senate bill — the proposed social media tax.
"Social media tax is not anything that we're looking for at this time," said Speaker of the House Lisa Demuth (R-Cold Spring). "But that's the beauty of what you see in the Senate and then in the House again, where those bills will be matched up. You'll hear arguments for and against both things."
The Senate bill adds a small tax per user for platforms with more than 100,000 consumers in Minnesota.
The state expects revenue of more than $90 million a year.
But tech lobbyists and Republicans say it could increase the cost of advertising for small businesses.
Sports betting phoenix
Sneaky gambling gambit?:
The Senate bill could also be where sports betting rises from the dead.
It includes a study on the impacts, but opponents suspect that’s a placeholder for the bill that failed to get through committees this year.
"I'm just a little dubious about bringing sports betting into this large omnibus bill because it's a big, big subject," said Sen. Scott Dibble (DFL-Minneapolis), as he tried and failed to amend the study out of the tax bill.
What's next:
The House and Senate leaders each told FOX 9 the other body’s provisions won’t pass, but that could change with global negotiations.
And for now at least, neither one of the bills includes the governor’s suggested sales tax rate reduction with new sales tax on services.