For more information contact: Matt Swenson 651-297-8406
ST. PAUL – The Minnesota House of Representatives got off to a fast start on their promise of providing tax relief to Minnesotans today by passing a bill that adopts changes made in federal tax codes since the adjournment of the 2006 Minnesota legislative session. Representatives Kim Norton, Andy Welti, and Tina Liebling all voted in support of the "Federal Conformity" bill that passed with overwhelming support from both parties. In passing this bill, these Rochester Representatives and their colleagues in the House have provided over $25 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 school teachers by increasing to $250 the amount of out-of-pocket expenses they can deduct.
· 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," said Norton after the vote was cast. "Students, teachers, and our brave soldiers could not wait until May for this much-needed relief."
Norton, Welti and Liebling understood the need to act quickly on this bill in order to allow the Department of Revenue to adjust their procedures for the upcoming tax season. In order to make sure Minnesotans could receive these benefits this year, the bill was passed quickly through the House. It is expected to pass in the Senate early next week and be signed into law by Governor Pawlenty in the coming days. Until this happens, Minnesotans are encouraged to wait to prepare their 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," said second term Representative Andy Welti. "My hope is that we can continue rely on his partnership throughout this session."
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 the widespread support from both parties, and likewise both houses, as this Federal Conformity bill. However, many legislators have high hopes to achieve a bipartisan working environment to move the state forward this session.
"I'm pleased that our first order of business gives significant tax relief to students, teachers and our veterans and military, said Liebling. "Swift passage of this bill gives many Minnesotans the opportunity to save money, time and resources."
Several amendments were offered to the bill, but in order to pass it quickly and immediately enact tax relief, representatives voted to support the bill in its current form. The House may consider taking up the amendments in tax committee after the budget targets are set later in the session.