For more information contact: Matt Swenson 651-297-8406
The Minnesota House of Representatives got off to a fast start on our promise to provide tax relief to Minnesotans last week by passing a bill that adopts changes made in federal tax codes since the adjournment of the 2006 Minnesota legislative session. This bill, known as the "Federal Conformity" bill, passed with unanimous support from both parties. In doing so, we as a legislature have provided over $24 million in tax relief to Minnesota college students, teachers, and military personnel.
Specifically this bill will:
· Save college students money by allowing low- and middle-income taxpayers to deduct up to $4,000 of college tuition and related expenses.
· Helps K-12 teachers by increasing the amount of out-of-pocket expenses they can deduct to $250.
· Make military combat pay retirement contributions tax exempt. Without this provision, members of the military (including the National Guard) deployed in combat zones have little earned income other than their combat pay.
This needed to be done. Students, teachers, and our soldiers in combat zones abroad could not wait until May for this much-needed relief. My legislative colleagues and I understood the need to act quickly on this bill to allow the Department of Revenue to adjust their procedures for the upcoming tax season. In order to ensure that Minnesotans could receive these benefits this year the bill was passed quickly through the House. It is expected to pass in the Senate and be signed into law by Governor Pawlenty in the coming days. Until this happens, I encourage you to wait to prepare your tax forms to avoid filing time-consuming amended returns to claim refunds.
I am glad that the Governor is on board with us in acting quickly on this bill. Swift passage of the Federal Conformity bill gives many Minnesotans the opportunity to save money, time and resources. My hope is that we can continue rely on the Governor's partnership throughout this session to achieve similar positive results in the future.
The success and speed of this bill's passage may be an early indication of this legislature's potential for progress this session. Not all of the bills introduced this session will have such widespread support from both parties, and likewise both houses, as this Federal Conformity bill. However, many legislators – including myself – have high hopes to achieve a bipartisan working environment intent on moving the state forward this session.
As a result of the recent election there are many new faces at the Capitol. The House and Senate are composed of legislators intent on creating a bipartisan and constructive atmosphere. Adherence to this goal will ensure the achievement of positive results. We must strive to find common ground in the long remainder of this session for the sake of all Minnesotans so that our goals will be met and progress will be achieved. As always, I remain strongly committed to this spirit of bipartisanship and consider it an essential ingredient for bringing the best results home to our district and the state at large.
I encourage you to be in regular contact with me regarding any issue concerning this community or our state. Your participation in the legislative process is essential. I rely heavily on your input and take your voice seriously in the work I am doing. It is only through your voice and partnership that you and I can be fully aware of and effectively responsive to the needs of our community. Please contact me at (651) 296-1188, 353 State Office Building, 100 Martin Luther King Blvd., St. Paul, MN 55155 or via e-mail at rep.leon.lillie@house.mn.