ST. PAUL – The Minnesota House of Representatives on Thursday passed HF 1777, a bill that cuts taxes for middle-class Minnesotans and repeals three businesses-to-business taxes. State Representative Erik Simonson (DFL-Duluth) voted in favor of the legislation.
“Couples hit with the marriage penalty, families struggling to pay for college, even families adopting children get a break in this bill,” Rep. Simonson said. “This is real tax relief for families and individuals who can really use it. They’re the folks who got hit the hardest during the economic downturn. I’m glad this House is giving them some relief.”
Whenever Congress changes federal tax law, the Legislature must decide whether to conform to the changes at the state level or not. Last session the House included federal tax conformity for tax year 2013 and beyond. However, this did not end up in the final budget signed into law. The legislation passed by the House Tax Committee would provide $200 million in middle class tax cuts through permanent federal tax conformity.
Those tax cuts include:
(Source: Non-partisan House Research)
The House Tax bill also would repeal three business-to-business taxes – warehousing and storage services, commercial equipment repair (including farm machinery) and telecommunications equipment – that were passed as part of the 2013 budget. Last year those taxes were part of a Senate package that paid for an upfront capital sales exemption for businesses and provided property tax relief by eliminating sales taxes for cities and counties.
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