Dear neighbor,
On Thursday the House passed a bill, House File 1777, that brings Minnesota’s tax code in alignment with some provisions of the federal tax code for tax year 2013 with other major provisions effective for tax year 2014. This bill also repeals the sales tax on commercial/industrial repair as well as telecommunications machinery and equipment starting June 30, 2013. The sales tax on warehousing and storage – scheduled to go into effect April 1 – is also repealed on the day following final enactment.
The legislation has about $200 million worth of deductions for Minnesota tax filers. The repeal of three business-to-business taxes is estimated to account for $300 million of revenue out of the current budget. This leaves approximately $700 million available from the projected budget surplus totaling $1.2 billion.
While I was happy to vote to lift the tax burden on Minnesota families – especially because our district was hit disproportionately by the taxes enacted in 2013 – the legislation did not go far enough. Absent from this bill were two conformity provisions for tax year 2013:
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Increased Standard Deduction for married joint filers which would have saved 640,000 married couples for an average $112 per return
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Increased Eligible Expense Limit for Dependent Care Credit which would have saved 26,000 working moms and dads on an average of $80 per return.
As Minority Leader Daudt stated so succinctly on the floor of the Minnesota House, “These dollars don’t belong in a vault in St Paul. This money belongs in the pockets of hardworking Minnesota taxpayers.” I supported amendments on the floor that would have made those deductions eligible for the 2013 tax year. Unfortunately, the Democrats voted against both amendments.
With session now underway, I encourage you to contact my office with your thoughts, comments, and concerns. I appreciate having heard from many of you. You can contact me via e-mail at rep.cindy.pugh@house.mn. To contact me by phone, call (651) 296-4315. Mail can be sent to Rep. Cindy Pugh, 313 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, Minnesota 55155. If you haven’t yet contacted me but would like to weigh in, I’d love to hear you.
Sincerely,
Cindy