Legislative Update on Taxes

Greetings from the Capitol!

This past weekend, I gave a tour of the Capitol to a group of constituents and others from my church. It was enjoyable to share all that has been happening at the Capitol this session and hear their comments on pending legislation.

Tax Relief:

This week, the House approved a $1.35 billion tax relief proposal benefiting our students, seniors, and middle class Minnesotans. The bill passed on a bipartisan vote of 80-52.
Highlights of the bill include:

• $269 million in relief for Minnesota’s senior citizens by increasing the income limit at which social security income is taxable. Under current law, seniors making more than $32,000 for a married couple or $25,000 for an individual must pay taxes on social security income. Under the House proposal, that threshold would increase to $61,000 for a married couple and $46,500 for a single filer in tax year 2018 and $72,000 for a married couple and $56,000 for a single filer in tax year 2019. 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.
• More than $125 million to address college affordability through a first-in-the-nation tax credit for student loan payments. Through the student debt tax credit, 77,500 students will receive on average a $640 reduction in their taxes.
• $35 million for families with young children by modifying the child & dependent care credit. A family of four earning $50,000 a year will receive an addition $1,200 toward their childcare expenses.
• $100 million in direct property tax relief for homeowners and renters.

Additionally, a provision I championed that provides tax credits and deductions for families saving for future post-secondary education expenses was included in the bill.

See my statement here!

The Senate will be taking up their tax proposal in the coming days. The discrepancies between the two bills will then be resolved in conference committee before they reach the Governor’s desk. Currently, we are debating the Transportation Omnibus Bill and the K12 Education Omnibus Bill; I will provide greater details on those two bills next week.

Contact Me:

For any questions, comments, or concerns regarding any issue related to state government, please feel free to contact me at either 651-296-0141 or rep.randy.jessup@house.mn. Thank you for allowing me to represent you at the Capitol.

Sincerely,