Dear neighbors,
As you know we began the 2014 session on February 25th. And it's been a very fast start. I had hoped to be in touch earlier this session but things got busy very quickly. I'm sharing a brief update on some of the progress we've made these past 10 days. I’ve also included some information about filing for property tax refunds and other tax filing information.
Increased Heating Assistance by $20 Million:
The legislature acted unanimously on day one to use $20 million of the budget surplus to support Minnesota’s Low-Income Home Energy Assistance Program (LIHEAP). Because of the propane crisis in Greater Minnesota the fund was dangerously close to running out of funds before the end of this very cold winter. Any leftover funds will return to the general fund after June 1st, 2014.
Middle Class Tax Relief Bill
Today the house passed a middle class tax relief bill that will save Minnesotans over $500 million through conforming Minnesota taxes to the federal tax code and repealing several business-to-business taxes on warehousing, machinery repair, and telecommunications purchases. I supported this tax relief package.
Revised Budget Forecast: $1.23 Billion Surplus
Last session, the legislature was facing a $627 million deficit and $800 million in debt to Minnesota schools. A year later, we’ve fully repaid money borrowed from schools and the state has a projected $1.23 billion budget surplus. This is the strongest structural budget in more than a decade. That’s good news for our goal this session to bring more middle class tax relief to Minnesota families and to retain a balanced budget into the next biennium.
Remember to file your Property Tax Refund:
Last week we had some good news: Minnesotans will pay less in property taxes in 2014! After more than a decade of property tax hikes, Minnesotans will pay less in property taxes in 2014 in large part due to direct property tax relief included in the 2013 state budget. Last year’s state budget included $133 million in direct relief for homeowners and renters through the new Homestead Credit Refund and expanded Renter’s Credit.
According to non-partisan House Research, when including direct relief, statewide property taxes for homeowners are decreasing by $161 million or 4.9 percent.
As part of our budget, 2,100 homeowners receiving a property tax refund in Blue Earth County will receive an average refund increase of $168. There will be 740 renters in Blue Earth County who already qualify for the Renter’s Credit who will receive an average credit increase of $110.
I encourage you to see if you are eligible for the Homestead Credit Refund or Renter’s Credit. Some of you who may not have been eligible in the past may be eligible this year due to expanded refunds and credits. You can find more information on eligibility and how file for your property tax refund at the Department of Revenue website.
Also, if you haven’t yet signed up to receive your regular or property tax refunds by direct deposit, consider doing so as it can substantially increase the speed of your refund. Whether you file your taxes on paper or electronically, you can select “direct deposit of your refund” when filing your income tax return. It’s safe, easy, and convenient- the refund is deposited directly into your account without paper or postage.
What to do:
· If you e-file: select the direct deposit option and enter your bank account number
· If you paper file: put your bank account number on your tax return before filing your taxes
· If you use a preparer: they can do it for you.
For more information on direct deposit, visit Department of Revenue’s direct deposit website or enter keyword “direct deposit” in the search box on their homepage.
I encourage you to contact me with any questions about property tax refunds, or any other legislative issues of concern at rep.kathy.brynaert@house.mn or 651-296-3248
Sincerely,
Kathy Brynaert
State Representative