What Minnesota’s new tax law means for student borrowers, restaurants and other businesses

Gov. Tim Walz signed the proposal Thursday to cut $104 million in taxes for more than 600,000 Minnesotans.

Gov. Tim Walz signed a fast-tracked proposal Thursday to cut more than $100 million in taxes for Minnesota restaurants and other businesses that got federal aid at the height of the pandemic.

The new law, the first signed under DFL-controlled government, would also wipe away state taxes on student loan debt that could be forgiven under a plan unveiled last year by the Biden administration.

“For the naysayers and the pessimists, yes, work can get done, and yes, folks came together collectively,” Walz said while surrounded by leaders in both parties.

The state Department of Revenue set a Friday deadline for lawmakers to pass the proposal so the department has enough time to implement the changes for the coming tax filing season. The DFL-controlled Legislature is expected to debate broader tax changes this session with a $17.6 billion budget surplus on the bottom line.

“There is more that we can do to lower costs for Minnesotans,” Lt. Gov. Peggy Flanagan said. “This is just the beginning.”

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