Friends,
Thank you to everyone who decided to spend an hour or so of their weekend on Sunday and came to my April Town Hall last weekend. It was another great event and I truly appreciate the great discussion we have together. Hope you can all make it to the next one!
Rep. Smith with two constituents who attended his April Town Hall Meeting.
Tax Conformity Passes House
On Monday, we passed bipartisan tax legislation on a vote of 90-38. The House tax proposal simplifies Minnesota’s tax code to fully benefit from federal tax reform and provide additional tax relief to middle-class Minnesotans. The legislation also delivers the first income tax rate cut for Minnesotans in nearly two decades by reducing the second tier income tax rate.
This bill delivers the first income tax cut in nearly 20 years and preserves many of the tax breaks Minnesota families use. We are committed to getting a tax conformity bill done this year so Minnesotans won't face hassles and headaches when they file their taxes next April. Without House Republican reforms, conforming to the federal tax code would cause 969,490 filers to pay more.
As a result of House Republicans’ proposal, more than 2.1 million Minnesota filers will benefit from a tax cut in tax year 2018. Highlights include:
- Helping middle-class Minnesotans keep more of what they earn by cutting the second tier income tax rate from 7.05% to 6.75% by tax year 2020. This would mark the first income tax rate reduction in Minnesota since 2000.
- Lowering taxes for people at all income levels by increasing the standard deduction for all filers.
- Protecting families by preserving a state personal and dependent exemption of $4,150.
- Encouraging affordable homeownership by allowing a state-itemized deduction of up to $30,000 in property taxes.
- Supporting hometown businesses and farmers by reinvesting extra revenue from corporate tax changes into Section 179 conformity and overall rate reductions.
In contrast to our legislation to simplify and reduce taxes, an analysis conducted by the Minnesota Department of Revenue shows that tax changes proposed in Governor Dayton's budget would raise taxes on Minnesotans of every income level, and make Minnesota's tax code more regressive.
Public Safety & Transportation Bills Pass House
On Tuesday, the House passed our Public Safety Omnibus bill. The bill is first and foremost committed to keeping Minnesotans safe, and it accomplishes that goal through important policy changes and additional funding in key areas. Our bill protects law enforcement officers and the communities they serve, keeps Minnesota’s roads safe, cracks down on dangerous sex offenders, and devotes more resources to protecting our children. It also enhances criminal penalties for assaulting medical personnel or firefighters.
Also on Tuesday, we passed our Transportation Supplemental Package. After passing a law last session that made the largest transportation investment in state history without raising taxes, we are prioritizing road and bridge needs once again without forcing drivers to pay more at the pump. Also included in that bill is my proposal to protect critical infrastructure from bad actors.
Rep. Smith spoke at a local school last Friday.
Bill Becomes Law!
I am extremely happy for Minnesota businesses as House File 2764 became law on Wednesday! This bill that I chief authored helps all corporations and partnerships with bylaws and decreased regulation. This is another step in making Minnesota stronger by making our state a better place for businesses to start, grow, and expand!
My other two bills to help with home affordability have also passed the Senate this week and have been presented to the Governor. We should get action from him next week. Also, my bill to modernize our notary public laws in Minnesota passed Ways & Means this week and will next head to the House Floor. Stay tuned!
Please continue to share your thoughts with me about our state government; bill ideas and concerns are welcomed! I am honored to serve you at the Capitol. If you are going to be at or around the Capitol, please stop by or schedule a meeting. My email address is Rep.Dennis.Smith@house.mn, phone number 651-296-5502, and by mail: 375 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155.
Have a great weekend!
Dennis