Hello from the Capitol!
This week, the House approved a $1.35 billion tax relief proposal benefiting our students, seniors, small businesses, 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, along with subtractions and credits for families saving for college using 529 Savings Plans. 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.
- $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.
- $100 million in direct property tax relief for homeowners and renters.
Environment and Natural Resources:
The House also passed the Environment and Natural Resources Omnibus Bill this week. The bill included the legislation I authored that protects hundreds of businesses, local units of government, schools and others who previously settled claims with the state in regards to waste disposal at the Freeway Landfill in Burnsville.
The Senate will be taking up their versions of the Tax and Environment bills in the coming days. The discrepancies between the bills will then be resolved in conference committee before they reach the Governor’s desk.
If you ever have any questions, comments, or concerns regarding any issue related to state government, please feel free to contact me at either 651-296-5387 or rep.roz.peterson@house.mn.
Sincerely,
