The 2016 legislative session has come to a close, and though we went down to the wire to approve major pieces of legislation, I’m pleased to report that many Minnesotans are going to benefit from tax relief that was approved by the House and Senate.
You’ll recall we had a $900 million budget surplus at the start of the year. This tax relief proposal – which provides more than $800 million in tax relief over the next three years – recognizes that Minnesotans are paying too much to state government.
Lawmakers came up with many ways to allow hardworking Minnesotans to keep more of their hard earned money. Included is tax relief for working families. $150 million is dedicated to the expansion of the working family tax credit, and another $32 million is used to reduce the cost of childcare by expanding the childcare tax credit. Under this provision, families could earn a tax credit of up to $960.
Those families facing college costs will also benefit from the bill. $110 million is included
for college graduates paying off student loans through a refundable tax credit up to $1,000, which is the first of its kind in the country. Families who contribute to 529 plans in order to save for their children’s college costs were also prioritized.
Main Street business owners are also receiving good news, as there’s $146 million in property tax relief for EVERY Minnesota small business through repealing the commercial-industrial property tax off their first $100,000 of property value.
Finally there’s $13 million in tax relief for veterans and an income tax exemption for their military pensions.
In the area of transportation, the House did approve a bill in the final hour of session that would have allocated $700 million for road and bridge needs statewide. But Senate Democrats prevented it from becoming law, outraged over the fact that no money was included for another train in Minneapolis.
Senate Democrats even admitted on Twitter that they killed the bonding bill over Southwest Light Rail. Though their political maneuvers left a sour taste in the mouths of many, I remain pleased that we were able to finally provide needed tax relief to hundreds of thousands of middle class Minnesotans.
As always, I am interested in your feedback. Please feel free to contact me by e-mail at Rep.Kathy.Lohmer@House.MN or contact my office at 651-296-4244. You can also send mail to my office address: 501 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155.