St. Paul, Minnesota — Today the Minnesota House of Representatives ended the 2014 Legislative Session early after passing “Tax Bill 2” and the supplemental budget. “Tax Bill 2” provides $103 million in additional tax cuts to Minnesota homeowners, renters, farmers and businesses. Once the bill is signed into law, the Minnesota Legislature will have provided $550 million in tax cuts this session – providing tax cuts for nearly 2 million Minnesotans. More than 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.
“This session we focused on building on the progress we made last year — all-day kindergarten, job creation, and property tax relief — to continue our state’s momentum and expand economic opportunity,” said state Representative Mary Sawatzky (DFL – Willmar). “Middle-class tax cuts, new Greater Minnesota job creation measures, and additional property tax relief are all great news for the people of Minnesota. Minnesota is moving forward again and we’ve worked to ensure our middle class can grow and prosper.”
The tax bill signed into law this session by Governor Dayton made reductions 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.
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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 $17 million in property tax relief to more than 90,000 homesteaded farms. An average family farmer in Minnesota will see $410 in property tax relief – an increase of about $200.
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Homeowners: A one-time increase for all Homestead Credit Refunds paid in 2014. Each and every homeowner receiving a refund will see a 3% increase, providing an additional $12.1 million in property tax relief to 500,000 Minnesota homeowners. The average homeowner will see a refund of $837 for 2014.
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Renters: A one-time increase for all Renters’ Credit Refunds paid in 2014. Each and every renter receiving a refund will see a 6% increase, providing an additional $12.5 million in property tax relief to 350,000 Minnesota renters. The average renter will see a refund of $643.
Source: Non-partisan House Research
Today, the House also passed its supplemental budget, which included critical investments in Greater Minnesota job creation, caregivers, and education. The budget includes $30 million in job creation measures, mostly aimed at Greater Minnesota.
Rep. Sawatzky is the chief author of a provision that increases funding for the Initiative Foundation located in Southwest Minnesota. The funding would be one-time resources for existing small business revolving loan funds that offer loans and gap financing for small businesses in need of capital.
The budget also contains education language authored by Rep. Sawatzky aimed at reducing special education paperwork. One provision expedites rulemaking authority to make changes recommended by the Special Education Case Load and Rule Assignment Task Force. The second provision establishes a statewide online system for special education paperwork, providing teachers with a simpler, more uniform system.
In addition to these provisions, the budget increases funding for home and community-based long-term care providers by 5 percent and appropriates $20 million for a border-to-border grant fund to promote the development of broadband. Areas of the state with low broadband connectivity will receive priority.
The budget also provides a formula funding increase for K-12 schools — increase of $25 per pupil — to further improve education outcomes. The budget also increases funding for early childhood scholarships and lifts the cap on scholarship funding per child.
In addition to the final bonding, budget, and tax cut bills, the Legislature worked at a fast-pace to build on the state’s economic momentum and expand economic opportunity to more Minnesotans.
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Propane Assistance: In the first week of session, we increased assistance to Minnesotans struggling to pay their heating costs during our terribly-cold winter.
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Raise the minimum wage: Raised Minnesota’s minimum wage in stages to $9.50 for large business and $7.75 small businesses by August 2016. More than 350,000 Minnesotans will get a raise.
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Women’s Economic Security Act: Passed the Women’s Economic Security Act (WESA). WESA aims to close the gender pay gap, strengthen workplace protections and flexibility for pregnant mothers, and expand employment opportunities for women in high-wage, high-demand professions.
Rep. Sawatzky encourages constituents to contact her with any questions, comments, concerns, or ideas. Rep. Sawatzky can be reached by phone at 651-296-6206 or by email at rep.mary.sawatzky@house.mn. Constituents can also visit Rep. Sawatzky’s AreaVoices blog, legislative page and sign up for email updates.