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State Representative Tim Kelly
100 Rev. Dr. Martin Luther King Jr. Blvd.
651-296-8635
For more information contact: Jason Wenisch 651-296-2317
NEWS COLUMN
TAX RELIEF AND JOB CREATION BILL APPROVED IN MINNESOTA HOUSE
The top priority for the 2012 session was to create more job opportunities for Minnesotans. On March 21, the Minnesota House passed a comprehensive job proposal that would do exactly that by easing the financial burdens our business owners face and encouraging policies that will allow them to expand their workforce.
When we held our Reform 2.0 hearings across the state last fall and winter, business owners told us the key to job creation was for the state to stop overtaxing them and allow them to keep more of their profits so they could use it to invest in their businesses, which would in turn create the need to hire new employees.
Our business property tax rate is one of the worst in the nation. It has no doubt caused some companies to stop their companies from relocating here, and it has helped cause many other businesses to move to states with a more competitive tax climate.
Legislative leaders believe the key to economic recovery in Minnesota is to focus on Minnesota business and employment growth, which will stimulate long-term economic activity. The recently approved Tax Relief and Job Creation Act will make this happen.
Let’s start with the business property tax rate. Under this bill, we would eliminate it in 12 years (the plan would start in 2014), allowing businesses to invest in growth and employees, not burdensome taxes. As for tax year 2013, the bill would allow a 70 percent exemption of the first $150,000 on commercial and industrial business property taxes. This would result in Wabasha County businesses seeing up to a 19 percent reduction in their property taxes if this plan becomes law, while Goodhue County businesses will receive up to an 18.6 percent cut.
How else would we help our small business owners? This legislation would prevent them from having to wait for a refund if they buy equipment that makes their business more efficient, as this bill would give them an upfront capital equipment exemption.
We also look to invest in companies willing to take a chance on innovation. The bill increases funding for the Angel Investor Credit and the Research and Development tax credit. Doing this helps make Minnesota a more attractive place to do business and enables companies to create high-paying jobs throughout the state.
Another goal is to make Minnesota a magnet for high-growth medical device and biotech industries. Our bill helps small, start-up biotech companies partner with larger, profitable companies to gain access an immediate infusion of cash so they can hire more employees. As it can take years for government approval of medical devices, our program will give companies a chance to stay afloat and create jobs while they await approval. A similar program created thousands of jobs in New Jersey, and I’m confident if implemented here we will see comparable numbers.
The Tax Relief and Job Creation Act encourages businesses to stay here, expand here, move their operations here and create more jobs. It declares to job creators around the country that Minnesota is open for business, and that their contributions to Minnesota’s economy are not only valued, but are essential to the long term economic health of our state.
News Items
- CONFERENCE COMMITTEES SHAPING IMPORTANT BILLS AT LEGISLATURE - (Posted: 2012-04-05 00:00:00)
- TAX RELIEF AND JOB CREATION BILL APPROVED IN MINNESOTA HOUSE - (Posted: 2012-03-22 00:00:00)
- MORE GOOD NEWS FOUND IN LATEST STATE BUDGET FORECAST - (Posted: 2012-03-06 00:00:00)
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