With all of the attention on the balancing of the budget and the differing views on how to solve the deficit problem, some tax legislation was passed. Although there was no rate increase or base expansion passed, there were a number of new tax provisions of benefit to businesses and some salutatory procedural tune-ups to the tax system.
The governor and the legislature, in the first Special Session, compromised on solving the budgetary red ink. The governor and legislative leaders agreed to support a package that produced $1.4 billion of new revenue from the K-12 funding shift and the securitization of "tobacco bonds." The legislature took credit for preventing a tax increase and implementing reforms in state government. On the other hand, the governor pointed to his success in achieving $1.4 billion in additional spending – over and above projected revenues; passing a $500 million bonding bill; preventing across-the-board cuts of 15 percent in state jobs; and defeating social policy changes that he opposed. H.F. 20 and S.F. 8 of the Special Session 1, codified as Chapter 7, was signed into line on July 20, 2011.
Besides Chapter 7, other tax bills were also passed. Go here to see how provisions like the data center sales tax exemption, Minnesota's new estate tax exclusion, refinements in the 60-Day Rule on property tax appeals, repeal of the homestead exemption, efforts at Federal conformity, Wisconsin reciprocity, and the like can impact you, your business or customers.