House tax plan released

published 4/28/2008

After months of debate, the House Taxes Committee unveiled its omnibus tax bill.

Rep. Ann Lenczewski (DFL-Bloomington), the committee chairwoman, said the bill contains a number of provisions introduced as individual bills and repackaged in HF3149. The committee is expected to revisit the bill Monday night and hear public testimony and amendments on Tuesday.

Some major bill provisions include:
• a new Homestead Credit State Refund that restructures three existing property tax refund programs and divvies out the refunds based on ability to pay;
• increased local government aid to cities, counties and townships;
• some development projects in tax increment financing districts would be subject to a corporate franchise tax;
• preventing new businesses from entering the JOBZ program and creating new penalties for breaching the requirements of the program;
• a new border city business investment credit;
• increasing taxes on machinery at utility companies;
• changes to the Green Acres program;
• subjecting Minneapolis-St. Paul International Airport and Holman Field in St. Paul to state property taxes;
• a property tax credit for cabins leased on government-owned land;
• changes to the “rural vacant land” classification;
• increasing the eligibility for a senior property tax deferral program;
• exempting Central Corridor rail line construction materials from sales tax;
• a moratorium on local sales tax referendums for three-and-a-half years;
• increasing collection on June accelerated sales taxes for alcohol and tobacco; and
• imposing a mortgage and deed tax to create or renew an environmental response fund for Anoka, Dakota, St. Louis, Hennepin and Ramsey counties.

A companion bill, SF2869, sponsored by Sen. Tom Bakk (DFL-Cook), was passed 39-28 by the Senate April 3 and then laid on the table.

- Mike Cook