MN House Passes Fix for Mistake in Income Tax Deduction Levels

Last summer, the Minnesota Department of Revenue found an error in the 2023 tax law that inadvertently shrunk the amount of the individual income tax standard deduction to 2019 levels, omitting four years of inflation adjustments. Legislators are working to remedy the problem as quickly as possible and correct the rates on the tax tables filers are using for this year’s tax forms.

On a 128-2 vote, the Minnesota House passed a bill Monday that would correct the error by adjusting the standard deduction amounts for tax year 2023. House File 2757 now goes to the Senate.

The bill would also align the definition of “Tribal Nation” in statewide local housing aid with the wording in the Tribal Nation Aid Program. In addition, the bill allows a 0.625% local sales and use tax authorization for Beltrami County, approved by 97% of county voters last November to fund a new jail.