House Taxes Committee deadlocks over push to advance pass-through-entity tax extension

Members of the Minnesota House Taxes Committee debated and then deadlocked over an effort to advance House File 31-27, a bill to extend the state's pass-through entity (PTE) tax.

The chair moved to send HF 31-27 to the General Register for floor consideration, arguing the measure is time-sensitive because of the March 15 tax-filing deadline and contending it would keep “billions of dollars” in Minnesota. Representative Anderson said, “I want this money to stay in Minnesota for Minnesotans,” and urged members to move the bill forward.

Opponents urged following the committee’s usual practice of laying tax bills over for negotiation and omnibus consideration. One member cautioned that the committee should “do our work in a straightforward and serious way” and said, “I don't believe this is a serious effort and I would urge my members to vote No.”

Nonpartisan staff summarized the bill: the measure would extend the expiration date for the state's PTE tax and explained how the elective state-level passthrough tax interacts with federal limitations on state and local tax deductions.

Committee procedure became the central issue. After an initial voice vote attempt, members asked for a division and then a roll call. The legislative assistant read a roll-call tally of 12 in the affirmative and 12 in the negative; the motion did not prevail.

Members and staff then debated whether a motion to bring the bill off the table or to reconsider the vote was necessary; the chair and staff clarified the rules for taking items off the table and for motions to reconsider. The committee recessed briefly to consult counsel and reconvened, but the vote outcome stood. Representative Joy had asked for a roll call and other members pressed for clarity on the correct procedural steps.

The committee did not adopt HF 31-27 at the hearing. Members continued to dispute whether the committee’s procedural steps were followed correctly and whether the bill should be reconsidered at a later time.