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Legislative News and Views - Rep. Jason Rarick (R)

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REP. RARICK DISAPPOINTED IN GOVERNOR’S VETO OF MIDDLE CLASS TAX RELIEF

Wednesday, June 8, 2016

ST. PAUL – Despite overwhelming bipartisan approval by the Minnesota House and Senate, legislation providing roughly $800 million in tax relief to middle-class Minnesotans has been vetoed by Governor Dayton.

 

State Representative Jason Rarick (R-Pine City) said the move was unnecessary.

 

“Governor Dayton had two issues with the bill, and not only did House leadership agree with his opinions, they also offered to resolve the problems a number of different ways in order to avoid a veto,” Rarick said. “Throughout this process, House Republicans worked with Democrats in both legislative bodies on a compromise, and despite the fact that the governor said he would sign the tax relief proposal, he ended up vetoing the most bipartisan tax bill in the past three decades.”

 

Rarick said the following provisions will not become law thanks to Governor Dayton’s veto:

  • $90.6 million in tax relief for Minnesota farmers. In 2016, more than 61,000 farmers would benefit from an ag bond credit.

  • $110 million in tax relief for college graduates paying off student loans through a refundable tax credit up to $1,000, the first of its kind in the country. In 2016, about 52,300 graduates would be eligible for the credit.

  • $146 million in tax relief for every small business in Minnesota by exempting the first $100,000 of commercial-industrial property.

  • $13 million in tax relief for Minnesota veterans by raising the income eligibility threshold, and increasing the total credit from $750 to $1000.

  • $150 million in tax relief for working families by expanding the working family tax credit. Nearly 386,000 families would be affected in tax year 2016.

  • $32 million to reduce the cost of childcare by expanding the childcare tax credit, families could earn a tax credit up to a $960. For tax year 2016, the number of families receiving the credit would be 41,400.

  • A substantial increase in Local Government Aid (LGA) and County Program Aid (CPA).

Rarick noted that the taxes bill was so good that 89 percent of state lawmakers voted to approve it.

 

“At this point it’s unclear whether or not Governor Dayton will call a special session to revisit our tax relief proposal, but if he does I will continue to work for the tax relief needs of Kanabec and Pine County residents,” Rarick concluded.