Friends,
We are making great progress in St. Paul to make Minnesota a better place to live, work, and raise a family. This week alone we passed a bill to deliver significant tax relief and debated a transportation bill on Friday that will prioritize roads and bridges.
Come Together Right Now for Tax Relief
On a bipartisan vote of 80-52 the House of Representatives passed the "Come Together Right Now" tax bill. Our tax plan finally gives hardworking Minnesotans long overdue tax relief and reform. The bill is aimed at helping middle-class Minnesotans with seniors and families with young children among those receiving relief. This is a great step forward in making Minnesota a better place to live and work.
Highlights of the $1.35 billion in tax relief include:
- $269 million in relief for Minnesota’s senior citizens by increasing the income limit at which social security income is taxable. As a result, by 2019 nearly 284,000 senior citizen tax returns (single and married filing jointly) would be eligible to receive a tax exemption on their social security benefits with an average tax reduction of $710.
- $42 million in relief for farmers by reducing the burden farmers and agriculture land owners pay for school bond referendums. Approximately 240,000 farmers could receive property tax relief to reduce their disproportionate share of school district debt service. Farms will also benefit from a measure conforming the state death tax to the federal exclusion.
- $35 million going for modifying the child and dependent care credit. A family of four with childcare expenses would be estimated to receive $660 in relief.
- More than $125 million toward addressing college affordability. Families saving for college using 529 Savings Plans will benefit from expanded subtractions and credits. In addition, 77,500 students will receive, on average, a $640 reduction in their taxes through a first-in-the-nation tax credit for student loan payments.
- $203 million in relief for hometown businesses by exempting the first $200,000 in property value from the extra tax on businesses and freezing its automatic inflator. This helps every business owner reinvest in their business, protecting 30,000 Minnesota jobs.
Watch my video talking about the bill here.
Transportation Plan
The House Transportation Plan will address the statewide need to fix and improve our roads and bridges by using existing resources, NOT raising taxes. In the next two years, we’re putting $2.1 billion toward our transportation needs with an emphasis on the roads and bridges used by Minnesotans each and every day.
Essay Contest
Don’t forget to have your school-aged children enter the Capitol restoration essay contest. Visit the website to learn more!
Rep. Loonan (right) with two guests and Speaker Daudt (left)
If you have any other questions on any of my bills or anything else going on at the legislature, please reach out to my office at (651) 296-8872. You can also reach me via email at rep.bob.loonan@house.mn.
Have a great weekend,
Bob