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 reductions for Minnesota homeowners, renters, farmers and businesses.
The bill (House File 3167), which is expected to pass, follows $443 million in tax reductions signed into law on March 21 that benefit over one million middle class Minnesotans by conforming the state tax code to the federal tax code and repealing three business-to-business sales taxes, including a tax on farm equipment repairs.
“This is another positive step towards a fairer and more progressive tax system,” said State Representative David Bly. “Overall statewide property taxes are decreasing for the first time in over a decade and Minnesotans are still able to count on the kinds of high quality services we depend on every day, like police officers, firefighters, and strong schools.”
Tax Bill 2 includes $45 million in targeted property reductions on top of the $133 million in property tax reductions the Legislature passed in 2013. Minnesotans who stand to benefit include:
Farmers
This provision builds off the effort to restore the Homestead Credit by enhancing the market value credit for homesteaded farms. The result is an immediate $18 million in property tax reductions to more than 90,000 homesteaded farms. An average family farmer in Minnesota will see $460 in property tax reductions.
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 reductions 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 reductions to 350,000 Minnesota renters.
Tax Bill 2 also provides property tax reductions 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 reductions to small businesses.
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 supplemental 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.
“There are a lot of provisions in this budget that benefit communities in Greater Minnesota,” said Bly. “Additional investments in our roads, schools, and health care workers will build on the positive economic momentum we’re seeing throughout the state.”
Rep. Bly encourages his constituents to contact him with any questions or comments about the House supplemental budget or Tax Bill 2. He can be reached by phone at (651) 296-0171, rep.david.bly@house.mn, or by postal mail at 559 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., Saint Paul, MN 55155.