ST. PAUL, MN (KELO AM) — House Republicans released details of their omnibus tax bill Wednesday, a bill that proposes to reduce taxes on hardworking Minnesotans by more than $1.35 billion over the next two years. The single-largest feature in the bill is $270 million to reduce the state tax on social security income, which will help senior citizens living on fixed income.
Middle-class families will benefit from $35 million going toward modifying the child and dependent care credit. As a result of the expansion of the dependent care credit, a family of four with childcare expenses will receive $660 more relief than current law.
More than $125 million goes toward addressing college affordability. Families saving for college using 529 Savings Plans will benefit from expanded subtractions and credits. In addition, 77,500 students will receive on average a $640 reduction in their taxes through a first-in-the-nation tax credit for student loan payments.
"This is a strong bill that recognizes the need to provide significant tax relief to hardworking Minnesotans,” said State Representative Greg Davids, R-Preston, chairman of the Minnesota House Taxes Committee. “From a family with a newborn attending daycare to senior citizens who worked hard to enjoy their retirement, House Republicans have prioritized middle-class Minnesotans in all stages of life and want them to keep more of their hard-earned money.”
Hometown businesses will be empowered to expand and hire more Minnesotans with $203 million to reduce the extra state property tax on businesses, exempting the first $200,000 in property value from the extra tax on businesses and freezing its automatic inflator.
Farmers will see significant relief with $42 million to reduce the burden agriculture land owners pay for school bond referendums. Farms will also benefit from a measure conforming the state death tax to the federal exclusion.
“House Republicans have championed farm property tax relief for years and I’m pleased we are once again prioritizing those who have been unfairly burdened by school construction bond issues,” said State Representative Steve Drazkowski, R-Mazeppa, chairman of the Minnesota House Property Tax and Local Government Finance Division. “Overtaxed Minnesota business owners will also enjoy relief from the onerous statewide general tax that is responsible for up to 35 percent of a business’ overall property tax obligations, and making this move helps preserve private sector capital that equates to the protection of 30,000 Minnesota jobs.”
The bill includes a number of proposals included in the tax bill vetoed by Governor Dayton in 2016 that was supported by 89 percent of the legislature.
“Minnesotans have waited long enough for meaningful tax relief—it's time for us to give the surplus back to the taxpayers who worked so hard to generate it. This tax bill puts money back in the pockets of seniors, college graduates struggling with student debt, farmers, Main Street businesses, and so many more,” concluded House Speaker Kurt Daudt , R-Crown.
The House Tax Committee is expected to hold public hearings on the bill this week.
