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Legislative News and Views - Rep. Nick Zerwas (R)

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Legislative Update (May 27, 2016)

Friday, May 27, 2016

Dear Neighbors,

Late Sunday night, the legislature finished its work and adjourned for the year. A top priority of mine heading into this year’s legislative session was passing a tax bill that would bring meaningful relief to Minnesotans across the state. I am pleased to report that the legislature has delivered on this priority.

Last weekend, the Senate and House passed a tax bill that includes $801 million in tax relief over the next three years, including more than $500 million in ongoing, permanent tax relief.

Highlights of tax provisions passed this year include:

  • Exemption for military retirement pay from state income tax which will help more than 18,000 Minnesota veterans
  • Agriculture property tax relief for farmers
  • A first of its kind refundable tax credit of up to $1,000 for college graduates paying off student loans
  • Tax relief for families contributing to a 529 Savings Plan to save for college costs
  • Property tax relief for rural businesses, allowing every small business statewide to exempt the first $100,000 of commercial-industrial property
  • Expansion of the childcare tax credit which would help families earn up to $960 a year
  • An increased income eligibility threshold and increased total credit for veterans
  • $10 million for the Angel Investor Tax Credit
  • Tax credits for parents who give birth to a stillborn child

In addition to tax relief, the legislature approved a supplemental budget bill that includes a provision that ends a fundamental disparity in revenue between metro and non-metro school districts.

Fighting for equity in education funding is something that has been a top priority for me since coming to the legislature. As many of you know, due to a complex equation used to determine per-pupil funding, many of the school districts in our area receive less funding compared to similarly sized districts in other parts of the state.

The provision in the supplemental budget means that districts in our area will receive an additional $11 per student in funding. While this doesn’t seem like a lot, it will make a big difference for our school districts. This is not a silver bullet to completely fix the problem in education funding equity, but it is a step in the right direction.

As always, please be sure to contact me if you have any questions or concerns. I can be reached by phone at 651-296-4237 or via email at rep.nick.zerwas@house.mn.

Sincerely,

Nick