No tax bill without special session, Dayton warns lawmakers

Gov. Mark Dayton on Friday reaffirmed his position on a potential special session, saying if lawmakers don’t agree by Monday to hold a special session that he will not sign a $259 million package of tax cuts.

Dayton, a DFLer, laid out a lengthy list of conditions earlier this week that he said legislative leaders need to meet before he’ll call a special session to fix an error in the tax bill and address capital investment and transportation issues left unaddressed during the 2016 session.

State revenue officials say a one-word error in the tax bill would cost the state roughly $101 million in revenue to the state’s Vikings stadium fund. House and Senate Republican leaders, however, have said the error can be fixed without a special session and have expressed little appetite to meet Dayton’s demands.

Those conditions, laid out in a letter Wednesday, include a transportation funding package with dollars for metro area transit, additional higher education spending and specific additions to the $1 billion bonding bill.

The governor will effectively veto the tax bill if he does not sign it by the end of Monday, a procedure called a pocket veto. The bill includes measures like tax credits for college debt, a property tax exemption for a proposed Minnesota United FC soccer stadium in St. Paul and an increase in aid to local governments.

“The ball is really in their court," Dayton said. "If they’re willing to make these accommodations we can move forward with a special session.” 

Dayton was scheduled to meet with DFL legislative leaders Friday afternoon. No meeting had yet been scheduled with House and Senate Republican leadership.