Providing tax relief to hardworking Minnesotans was arguably one of the most important tasks state lawmakers faced this session. On March 30, the Minnesota House took the first step in that process by approving legislation that allocates $1.35 billion in relief to taxpayers – mainly in the middle class.
As someone who has fought for this provision tirelessly, I’m pleased to report the proposal increases the income limit thresholds for the taxation of Social Security income which will help our senior citizens.
Currently, for married couples, income less than $32,000 is exempt and for single filers that amount is the first $25,000. Under this bill, for tax years 2017 and 2018 married couples will see the first $61,000 exempt from income taxes. For single filers, it would amount to the first $46,500. Beginning in 2019 and continuing, the amounts increase further to $72,000 for married filers and $56,000 for single filers.
Every small business owner in the state will benefit from bill language allocating $203 million to eliminate an extra property tax on small businesses – the statewide general tax - up to their first $200,000 of commercial/industrial property.
There’s also $125 million to address college affordability through a first-in-the-nation tax credit for student loan payments and $35 million for families with young children by modifying the child and dependent care credit.
I’m pleased this bill was passed with bipartisan support. It’s important to signal to people in Minnesota that we recognize they’re overtaxed. When Democrats had full control of the legislature, they increased taxes and fees by roughly $2 billion and we’re still trying to right that wrong. The current legislature recognizes that you can spend your money better than state government can, and is desperately trying to allow you to keep more of what you earn.
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.