This week the Minnesota House of Representatives unanimously passed its first bill of the legislative session–a bill to reduce taxes for Minnesota families.
The bill conforms Minnesota’s tax system to changes passed in the American Taxpayer Relief Act of 2012, allowing an estimated 200,000 Minnesotans, including teachers, students, homeowners and seniors, to file their state taxes with more convenience and a greater tax benefit.
Late enactment of the American Taxpayer Relief Act of 2012 by Congress created potential problems for Minnesota taxpayers. If Minnesota does not conform with the new federal changes, taxpayers who claims any of the affected deductions will need to file a special form to calculate their Minnesota income tax liability. By conforming to the new changes, Minnesotans will likely not need to change forms and can file without additional adjustments.
According to the Minnesota Department of Revenue, over 250,000 Minnesotans would benefit from federal tax conformity, including:
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55,000 teachers who claim the $250 educator expense deduction.
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90,000 homeowners who claim an itemized deduction for mortgage insurance premiums.
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60,000 students or parents of students who take up to $4,000 for the higher education tuition and fee deduction.
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Unknown amount of seniors who would need to recalculate the amount of social security benefits taxable in Minnesota, exceeding the amount taxed federally because they would not qualify for the IRA distributions to public charities if age 70 ½ or older.
The Minnesota House also passed legislation this week that extends health care coverage to 40,000 currently uninsured low-income Minnesotans, while at the same time saving the state hundreds of millions of dollars. This is an important step towards ensuring strong, healthy communities as we work to implement the Affordable Care Act.
In addition to these pieces of legislation, several bills I authored are making their way through committees.
HF355 improves access to mental health education for students from 6th grade through 12th grade. I am hopeful the Legislature will pass this bill so we can give students with mental health struggles the support they deserve.
HF364 supports students by increasing funding for ‘extended time programs,’ also known as learning year programs. These programs may include extended day, extended week, summer school, or independent study programs that help students grow and learn outside of the normal school day.
HF338 improves our state’s “Buy the Farm” law, which requires utility companies to buy land from farmers to clear the way for high-voltage transmission projects. Specifically, it calls for utilities to pay relocation costs and compensation and also requires them to file challenges to a claim within 60 days to prevent stalling. I’ve heard from many landowners who say the current law is not working. The changes in my bill will help the growing number of Minnesotans filing claims due to the CapX2020 project.
As the legislative session continues, visit my website – www.house.mn/20B – to sign up for updates, learn about upcoming town hall meetings, and share your views about how we can move our state forward.