This bill amends Minnesota Statutes by adding a new subdivision to section 290.92, which prohibits the withholding of federal income tax from the pay of state employees. Specifically, it mandates that when the commissioner of management and budget prepares state employee payroll or when an agency head pays employees directly, they must not withhold or remit any federal income tax. This new provision is effective the day following final enactment.

Additionally, the bill repeals section 16A.13 of the Minnesota Statutes, which previously outlined the procedures and responsibilities related to federal tax withholding from state employee pay. The repeal of this section aligns with the new prohibition on withholding federal income tax, effectively eliminating the state's role in collecting and remitting such taxes for its employees. This change is also effective the day following final enactment.

Statutes affected:
Introduction: 290.92, 16A.13