ST. PAUL, MN – Today the Minnesota House of Representatives passed legislation that cuts taxes for over one million middle class Minnesotans and repeals three business-to-business taxes. The bill, which passed the Senate earlier today, now heads to Governor Mark Dayton to be signed into law.
If taxpayers have not filed their tax return, the Department of Revenue is asking that taxpayers wait until Monday to file. If they have already filed, the Department of Revenue will examine the return to see if they qualify for these tax cuts and notify them if they need more information or if they need to file an amended return.
“It’s no easy feat to pass a significant piece of legislation like this less than one month into the Session,” said State Representative Jason Metsa (DFL – Virginia), who supported the bill. “We’re working with a real sense of urgency to build on our economic momentum so more Minnesotans can share in the recovery. I encourage my fellow Rangers to join me in keeping the momentum going by spending our rebate dollars at our local Main Street mom and pop businesses.”
Last session the House included federal tax conformity for tax year 2013 and beyond, but it did not end up in the final budget signed into law. More than one million middle-class Minnesotans will see $225 million in tax cuts due to federal conformity and boosting the state’s Working Family Credit. The tax cuts through federal conformity include:
(Source: Non-partisan House Research)
The bill increases the Working Family Credit above and beyond federal conformity, providing a total of $66.2 million in tax cuts to 331,000 claimants earning less than $49,103. The average family will see a $146 tax cut through this expansion of the Working Family Credit.
The final bill also repeals three business-to-business taxes on warehousing and storage services, commercial equipment repair (including farm machinery) and telecommunications equipment.
In addition, the bill creates an ‘Iron Range school consolidation and cooperatively operated school account.’ Metsa encourages constituents to contact his office with any questions about the account and noted any questions about school co-location can be directed to local school board members.