Farmers and other Minnesota business owners are being slapped with unexpected tax bills this year, a problem State Rep. Chris Swedzinski, of Ghent, said needs to be fixed during the 2020 legislative session.
Swedzinski said the state’s failure to fully comply with federal Section 179 tax code has left like-kind exchanges to be treated by the state as income. In other words, anyone who uses a trade-in as part of a capital purchase could be subject to this new Minnesota tax, often in the thousands of dollars.
Swedzinski said, “One of the big things I keep hearing from businesses and farmers trying to expand their business or update their equipment, is that we need to fix the Section 179 issue because folks are really getting dinged if they’re trying to improve or update their equipment.”
The Legislature reconvenes in St. Paul on Feb. 11.