Key business issues are moving quickly at the Capitol

By Doug Loon
President and CEO
Minnesota Chamber of Commerce

It’s been another busy week, particularly at the Capitol, where several important bills are moving quickly. I want to mention two bills today that have significant impacts on Minnesota employers and, of course, Minnesota Chamber members.

One of the Chamber’s top priorities this session is reinstating Minnesota’s Pass-Through Entity tax, commonly known as the PTE tax at the Capitol. The proposal was heard in both the House and Senate this week. The PTE tax is a win-win policy that provides federal tax relief to more than 66,000 Minnesota businesses, primarily small to medium-sized companies, without costing the state any revenue. More than 30 states already offer a PTE tax, and without action, Minnesota risks falling further behind other states when competing for business investment.

Timing is critical. First-quarter estimated tax payments are due in mid-April, meaning businesses need certainty as soon as possible. The Chamber appreciates members of the business community who testified in support of the proposal this week, including Chris Powers of Abdo in the House and Chris Martin of Eide Bailly in the Senate, both testifying on behalf of the Minnesota Society of CPAs, a great partner organization to the Chamber.

The Chamber also testified in opposition to House File 3794, a bill that seeks to regulate surveillance data and automated decision systems used by businesses. While this issue may sound somewhat arcane, the reality is that the bill’s broad language around surveillance and discrimination could sweep in routine analytics used across industries such as retail, manufacturing, logistics and hospitality.

Businesses rely on automated tools every day for fraud prevention, loyalty programs, inventory management and many other functions. This proposal could create significant uncertainty and potentially new legal liability for standard business practices here in Minnesota. We do not want to put our state at a disadvantage, so the Chamber will continue advocating for a regulatory environment that supports innovation and investment while pushing back on policies that add complexity and litigation risk for employers.

Also, be sure to check out the Chamber’s website for upcoming events like Chamber Day at the Capitol on April 15, where we will discuss these issues and others. Registration is also open for our Washington, D.C. Fly-In, which will take place June 9 through June 11.

We also recently posted new resources on tariff refunds designed to support small businesses following the Supreme Court’s ruling about a week ago. Many of those resources are provided in partnership with the U.S. Chamber of Commerce, and we appreciate their support in helping us share timely information with businesses here in Minnesota.

Finally, tune in to next week’s podcast, where we will review the results of the Chamber’s recent survey of businesses on how the paid family and medical leave law is affecting their operations.

Until then, please have a great weekend and a prosperous week ahead.  We look forward to catching up with you on next week’s Minnesota Business Podcast.