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State Representative Sandra Masin

335 State Office BuildingState Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-3533

For more information contact: Matt Privratsky 651-296-6860

Posted: May 16 2014 12:00AM
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Press/News Releases

House finishes session early after passing tax cut and budget bills


Dear Neighbors and Friends,

Today, the House wrapped up the 2013-2014 Legislative Session early for the first time in over a decade after passing our supplemental budget and the second tax bill off the House floor. We also passed a package of capital investment projects early this morning. Those projects will put people to work in the short term and preserve our community assets in the long term. It’s a win-win for Minnesota.

The passing of these key bills mark the end of a very productive biennium. When we came to the Capitol in January of 2013, Minnesota faced a $600 million budget deficit and still owed schools over $800 million. After passing a balanced budget last year, lawmakers returned to the Capitol in 2014 with a $1.2 billion budget surplus and an agenda focused on cutting taxing and growing Minnesota’s economy.

Tax Bill 2

The first tax bill signed into law this session by Governor Dayton made reduction to middle-class income taxes, largely through federal tax conformity. This second tax bill will cut taxes by $103 million largely through further property tax relief, bringing the total tax cuts to $550 million for this session. Tax Bill 2 includes $45 million in targeted property tax relief to Minnesota homeowners, renters, and farmers.

·        Homeowners: Each and every homeowner receiving a refund will see a 3% increase in 2014. The average homeowner will see a refund of $837 for 2014.  This comes on top of the $133 million in direct property tax relief passed in 2013 for homeowners and renters.

·        Renters: Each and every renter receiving a refund will see a 6% increase in 2014. The average renter will see a refund of $643.This comes on top of the $133 million in direct property tax relief passed in 2013 for homeowners and renters.

Source: Non-partisan House Research

In addition to property tax relief, the tax bill includes targeted income and sales tax relief:

  • Aquatic Invasive Species Prevention Aid: $4.5 million this year and $10 million a year thereafter will be distributed to 83 of Minnesota's 87 counties with public-access boat landings, to help manage county-based AIS-control efforts.
  • National Guard members: Military income paid to National Guard members in Active Guard/Reserve status now will be treated like other forms of active-duty military pay and eligible to be subtracted from income taxes.
  • Reading-tutor expenses: Parents or guardians of students struggling to learn how to read will be eligible for a new education credit equal to 75 percent of tutoring expenses, up to $2,000.
  • Businesses will be relieved of significant cash-flow pressure through a reduction or, in some cases, complete elimination of the current liability to submit June sales taxes about six weeks earlier than normal.

Supplemental Budget

The Supplemental Budget bill makes critical investments in long term care givers, expanded broadband internet access, and Greater Minnesota workforce development.

Last year, the Legislature provided a rate increase for nursing home workers for the first time in years. The Supplemental Budget will provide a similar 5 percent increase for home and community based long term care workers this year.

Some key provisions in the Supplemental Budget include:

  • E-12 Education - $54 million: Additional investment for Minnesota learners from pre-K through high school (Roughly $25 in additional funding per student)
  • Higher Education - $22.25 million: Enhance post-secondary opportunities across Minnesota.  
  • Health and Human Services - $103.9 million: Provide an additional 5 percent increase for home and community-based health care workers who provide care for the elderly and disabled.
  • Jobs & Economic Development - $30 million: Invest in statewide job creation such as broadband infrastructure and workforce training
  • Transportation - $15 million: Provide investments for potholes repairs as well new investments in roads and bridges

Other Accomplishments

These final bills come after a session filled with significant accomplishments, including:

  • Propane Assistance: In the first week of session, we increased assistance to Minnesotans struggling to pay their heating costs during our terribly-cold winter.
  • Raise the minimum wage: Raised Minnesota’s minimum wage in stages to $9.50 for large business $7.75 and small businesses by August 2016. More than 350,000 Minnesotans will get a raise.
  • Women’s Economic Security Act: Passed the Women’s Economic Security Act (WESA). WESA aims to close the gender pay gap, strengthen workplace protections and flexibility for pregnant mothers, and expand employment opportunities for women in high-wage, high-demand professions.

If you have any questions about the work we’ve done this session, please don’t hesitate to contact me. It has been such a privilege to be a part of this Legislature, and I look forward to visiting with you throughout the summer about the things we’ve done at the Capitol.

Sandra Masin

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