Dear Neighbors,
In this edition:
1) Hennepin County Sales Tax Actually 6.15% Under Governor’s Plan
2) State Economy Continues Improving: Let’s Promote a Smarter Government, Not a Bigger Government
3) Visitors at the Capitol
1) Hennepin County Sales Tax Actually 6.15% Under Governor’s Plan
One of the major elements of Governor Dayton’s budget proposal is broadening the state sales tax base to nearly all goods and services, while simultaneously lowering the rate from 6.875 percent to 5.5 percent. The governor believes that by spreading a smaller cost to everyone—even to business-to-business transactions—our tax system will be “fairer, modern and sustainable.”
However, looking at the rest of the governor’s budget details, we find that Hennepin County residents will not see the same savings as other Minnesotans. The governor proposes adding an additional .25 percent transit tax for metro area taxpayers on top of the existing .25 percent that goes toward light rail and the Metro Transit bus service.
Taken together with the Twins stadium sales and use tax (.15 percent) passed by the Hennepin County Board in 2006, the total sales tax rate for our area comes to 6.15 percent. This means that the people of Dayton, Rogers, and Maple Grove will be paying nearly the same sales tax rate, but on all goods and services.
The governor’s proposal continues to be heavily scrutinized. Many suburban Democratic lawmakers are expressing reservations with not only the sales tax increase, but the income tax increase as well. I anticipate the budget will be heavily amended before it is finalized this spring, and I stand committed to helping craft a plan that is in the best interests of all Minnesotans.
2) State Economy Continues Improving: Let’s Promote a Smarter Government, Not a Bigger Government
Over the last two years, Republicans worked to make our state government reasonable and accountable to taxpayers. We slowed spending, made sure government lived within its means, and reformed the way programs and services were delivered. We made some mistakes along the way, and not everyone was pleased with the decisions we made, but we worked to run our state budget in a fiscally responsible manner.
It is fair to say our efforts have helped contribute to positive economic news. The supplemental economic report issued last week stated Minnesota’s state revenue collections continue to surpass previous projections, with $140 million more than expected in January. This is on top of the $2.5 billion in combined surplus revenue shown in the three full reports dating back to November of 2011.
By looking at the data, it gives strong credibility to the belief of many that we can balance our $1.1 billion budget deficit by simply limiting spending to within the projected three percent revenue growth Minnesota is likely to experience.
We believe the promotion of a smarter government is a better way to balance the budget, and the results seem to support those efforts.
3) Visitors at the Capitol
Last week I met with Tony Pruyn from Maynard’s Restaurant in Rogers. Anoka-Hennepin School District lunch support staff visited my office regarding school nutrition, and Zach Sanford of Dayton advocated for his school, Rasmussen College.
Thanks to Tony, the Anoka-Hennepin staff, and Zach for visiting!
As always, feel free to contact me at any time. I welcome your visits to the Capitol and am honored to serve the people and priorities of our district.
Have a great week,
Joyce
**Encourage your neighbors and friends to sign up for my email updates at www.house.mn/34A