I recently received a letter from the Minnesota Department of Revenue stating that I owed taxes from my 2008 state return. After checking my 2008 state return, I discovered I was not allowed a deduction for tuition that was allowed on my federal return. When I pulled up the 2008 instructions and forms on the state website, I saw that the original instructions had been overwritten in red and a new form was created in April 2009 to add back the federal deduction for tuition. I also discovered that the state Legislature passed a law April 3, 2009, retroactive for the 2008 tax year, disallowing the tuition deduction for the state return that was allowed on the federal return.
I submitted my return electronically and had it accepted several weeks before the retroactive law was passed. It's scary to think that the state Legislature can pass a retroactive tax law like that. I can't find where it violates the Constitution, but it sure seems like it violates the Constitution's intent. Then to have the state Department of Revenue hunt me down three years after they had accepted the return.
Plus, there is the issue of the challenges of paying for a college education these days. This reinforces the impression that the Minnesota Legislature doesn't give much importance to higher education. I've heard of the Minnesota Miracle that reformed tax law when the state Legislature wasn't so dysfunctional. It's time for some sort of miracle to get back a functional Legislature.
Steve Savageau
Duluth
