ST. PAUL, MN – The Minnesota House of Representatives plans to wrap up a jam-packed week today by voting on ‘Tax Bill 2,’ a $103 million package of additional tax cuts for Minnesota homeowners, renters and businesses.
The bill (House File 3167), which is expected to pass, follows $443 million in tax cuts signed into law on March 21 that benefit over one million Minnesotans.
State Representative Carly Melin (DFL – Hibbing) says additional middle class tax cuts are a smart way to continue building on Minnesota’s positive economic momentum.
“This bill will benefit a lot of individuals and families in northeastern Minnesota,” said Melin. “It’s going to help more people share in the benefits of our recovery.”
State Representative Jason Metsa (DFL – Virginia) echoed those comments, saying Minnesotans will pump those dollars right back into their local economy.
“Not only are you putting more money in people’s pockets, you’re making sure our local Main Street mom and pop businesses have more customers,” said Metsa. “Folks will go spend that money right away on necessities like gas and groceries, so it’s a win-win kind of situation.”
Tax Bill 2 includes $45 million in targeted property tax relief on top of the $133 million in property tax relief the Legislature passed in 2013. Minnesotans who stand to benefit include:
Homeowners
A one-time increase for all Homestead Credit Refunds paid in 2014 means that each and every homeowner receiving a refund will see a three percent increase, providing an additional $12.1 million in property tax relief to 500,000 Minnesota homeowners.
Renters
A one-time increase for all Renters’ Credit Refunds paid in 2014 means that each and every renter receiving a refund will see a 6 percent increase, providing an additional $12.5 million in property tax relief to 350,000 Minnesota renters.
In addition to property tax relief for homeowners and renters, Tax Bill 2 provides a property tax cut for small businesses with property value less than $1.1 million by excluding all commercial and industrial property value less than $150,000 from the statewide general property tax. The bill also includes sales tax reforms that provide additional sales tax relief to small businesses.
Lastly, the bill provides tax relief to our active military members by extending our active military income tax subtraction to National Guard service members in the Active Guard Reserve.
The vote on Tax Bill 2 comes one day after House lawmakers passed a supplemental budget by a vote of 70-59.
The $322 million budget package is designed to grow Minnesota’s economy right now and into the future by making investments in bread-and-butter economic priorities such as:
More funding for every school
$54 million to boost the funding formula by one percent (an increase of $58 per student) and $3.5 million to expand the school lunch program so no student is ever denied a meal due to the inability to pay.
Job creation in Greater Minnesota
$37.5 million for investments in high-speed broadband internet, job training, and funding for the six Initiative Foundations in Greater Minnesota that provide loans and resources for small businesses.
Wage increases
$80.36 million for a 5% wage increase for home-and-community-based health care workers who provide care for the elderly and people with disabilities.
Critical transportation funding
Additional investments in highways, roads and bridges as well as funding for local governments to fill potholes.
Healthy meals for seniors
$425,000 for nutritionally balanced meals for seniors at community congregate dining facilities.
“I’ve said it before and I’ll say it again: I’m proud as heck of what this Legislature is doing to create jobs and improve the lives of Minnesotans,” said Metsa. “We’re putting the people ahead of wealthy special interests. That’s a stark contrast to what’s taken place here over the past decade.”
“I think we have good reason to be optimistic about our future,” added Melin. “We’re investing in priorities that Minnesotans broadly share like our children’s education, middle class tax cuts and job creation – the kinds of things that will keep our economy on the right track.”
Melin and Metsa encourage their constituents to stay in touch during the 2014 Legislative Session with any questions, comments or other feedback. Their respective contact information is as follows:
REP. MELIN
515 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
Saint Paul, Minnesota 55155
651-296-0172 or toll-free at 888-726-0711
E-mail: rep.carly.melin@house.mn
REP. METSA
521 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
Saint Paul, Minnesota 55155
651-296-0170 or toll-free at 888-682-3205
E-mail: rep.jason.metsa@house.mn