Saint Paul, Minn. – House and Senate Tax Committee conferees have reached agreement on “Tax Bill 2,” which provides $103 million in additional tax cuts to Minnesota homeowners, renters, farmers and businesses. If this tax bill becomes law, the Minnesota Legislature will have provided $550 million in tax cuts this session – providing tax cuts for nearly 2 million Minnesotans. About one million Minnesotans received tax cuts in the first tax bill passed this session. 940,000 Minnesotans will see property tax relief in Tax Bill 2, including 500,000 homeowners, 350,000 renters, and 90,000 farmers.
“Over the past two years this legislature has made significant progress to reduce taxes for middle class Minnesotans and this bill continues in that appropriate direction,” said State Rep. Ann Lenczewski (DFL – Bloomington). “This second tax bill focuses on ways to make further reductions in property taxes for homeowners, renters and farmers. We believe this is a responsible way to continue expanding our economy from the middle-out while maintaining our stable budget into the future.”
“There is a good balance of tax relief for everyone in this second tax bill, especially direct property relief for individuals, renters, businesses and our agriculture community,” said Sen. Rod Skoe (DFL – Clearbrook). “But it takes more than just cutting taxes to grow our economy, and that’s why our tax relief package also invests in new workforce housing, protecting our lakes and streams from aquatic invasive species and new efficiencies for state and local governments.”
The tax bill signed into law this session by Governor Dayton made reduction to middle-class income taxes, largely through federal tax conformity. This second tax bill will cut taxes largely through further property tax relief. Tax Bill 2 includes $45 million in targeted property tax relief to Minnesota homeowners, renters, and farmers.
Source: Non-partisan House Research
This property tax relief builds on progress from last session. The DFL-led Legislature responded to increasing property taxes last session by investing in significant middle-class property tax relief, including a $133 million investment in direct, targeted property tax relief. As a result, property taxes will decrease this year for the first time in more than a decade. Homeowners, in particular will see a $161 million decrease in property taxes this year. But since property taxes are up 86% for Minnesotans over the past decade, Democrats were pleased to move forward with further property tax relief for Minnesotans.
In addition to property tax relief, the tax bill includes targeted income and sales tax relief:
The House and Senate are likely to take up the Tax Bill for final passage next week.