Minnesota won't tax the rebate checks that were sent to households this fall, but the federal government will.
The IRS recently determined the checks will be considered federally taxable income, despite a push from state officials to get the rebates treated the same as untaxed pandemic-era relief payments in other states.
"Minnesota is being treated unfairly on this. They picked an arbitrary date to end the emergency," said Gov. Tim Walz, who added that he's been pushing the IRS to reverse the decision. "Every other state was afforded this and they say we have to have a red line in the sand. I'm deeply disappointed."