Minnesota State Wire

The Minnesota legislative session, which officially began on January 14, 2025, experienced delays due to a House DFL boycott and a temporary power-sharing agreement in the Senate. However, legislative activities resumed in early February after an agreement between the House GOP and DFL allowed the House DFL to return to the Capitol.

One of the initial bills introduced was HF 11 (Baker), aiming to extend the implementation of the MN Paid Family & Medical Leave program by one year. The NFIB supports this extension as it would provide small businesses more time to adjust to new requirements. Discussions are ongoing about making this program less burdensome for businesses.

Another significant issue is tax relief. HF 5 (Joy) seeks to repeal both a retail delivery tax and an inflationary increase in the state’s fuel tax, measures originally passed in 2023. NFIB supports these repeals as they would reduce operational costs for small businesses. Additionally, SF 44 (Rest)/HF 386 (Norris) proposes a vendor allowance for retailers collecting state sales tax, offering relief for administrative costs.

Governor Walz's budget proposal includes a minor decrease in sales tax but expands its scope to include various services, potentially generating significant additional revenue. This expansion contrasts with several proposed bills aimed at reducing state income and corporate franchise taxes, which have NFIB's full support.

Health insurance costs remain a concern for small businesses. HF 400 (Perryman)/SF 565 (Frentz) requires the state to cover costs associated with new health benefits that raise insurance premiums. Another bill, SF 333 (Dahms)/HF 837 (O’Driscoll), seeks funding for the Minnesota Premium Security Program through 2027. Without continued funding post-2025, premiums could rise significantly.

NFIB backs HF 4 (Johnson, W.), advocating for a constitutional amendment that limits state spending growth and mandates automatic taxpayer refunds from surplus dollars. The organization fears unchecked spending increases could burden small businesses.

Reforms are also sought for Earned Sick and Safe Time mandates via HF 1325 (Schultz). Proposed changes aim to ease employer burdens by allowing lower payment rates for small employers and excluding certain workers from coverage.

Lastly, SF 671 proposes increasing Minnesota’s minimum wage to $20 per hour by August 1, 2029. Although unlikely to progress soon, NFIB opposes this increase and plans active opposition if necessary.