Dear Neighbor,
The Legislature is back at the Capitol with the 2017 legislative session having begun this week. We once again face a number of significant issues and I look forward to meeting the challenge.
Our top responsibility this session will to set a new two-year state budget. I will be front and center on that project in my role as chairman of the House Ways and Means Committee – the last stop for bills related to taxes and appropriations.
Another top priority this year will be to provide tax relief and the House made progress on that issue. On just the third day of the session, we fast-tracked into passage $21.7 million in immediate tax relief for Minnesotans by bringing the state’s tax code into compliance with federal provisions. Nonpartisan officials indicated this move was necessary by Jan. 11 in order for tax software programs to be updated in time for citizens to take advantage of these breaks during the upcoming tax season.
Key provisions of the bill (H.F. 2), of which I am a co-author and which now is in the hands of the Senate include:
- Providing deductions for higher education expenses
- Providing deductions for teacher classroom expenses up to $250
- Eliminating the need for two sets of depreciation schedules for those who purchase work equipment
- Providing an itemized deduction for mortgage insurance premiums
- Excluding from gross income loan forgiveness on home foreclosures
- Allowing the tax paid on high-cost employer health care coverage to be claimed as an itemized deduction
It is good we were able to pass the bill so quickly this session, but this is only the very beginning of tax-relief proposals House Republicans will be offering this session. Remember, last year we had overwhelming bipartisan support in passing half a billion dollars in ongoing tax relief only to have the governor veto it.
Another major issue this session is reducing the soaring costs of health insurance. The House on Thursday moved to declare urgency and bring to a vote the 2017 Health Care Emergency Aid and Access bill (H.F. 1), which would provide premium relief, extend access to doctors for continuity of care, and begin to reform the individual market. Unfortunately, Democrats blocked the parliamentary procedure required to expedite this bill despite agreeing to do so just days earlier.
Look for more news on these and other issues (including progress on bills I am personally authoring) as the session unfolds. You also can visit the Minnesota House of Representatives website for more the latest developments and general legislative information.
Sincerely,
Jim Knoblach