St. Paul, Minnesota — Tonight the Minnesota House of Representatives passed the conference committee report on HF 729, the Omnibus Jobs, Energy, Commerce, and Housing Finance Bill on a 73 to 59 vote. The bill contains important provisions authored by State Representatives John Ward (DFL – Baxter) and Joe Radinovich (DFL – Crosby).
The bill includes the largest business tax cut in the state’s history through a reduction in the rate that employers pay on unemployment insurance. Rep. Radinovich was the chief author of this provision. This reduction will save businesses almost $350 million in the next two years and the average Minnesota employer will save $150 per employee.
“This is a responsible, targeted tax cut that will provide businesses with more money that they can then use to hire new workers and expand their businesses,” said Rep. Radinovich. “This is the largest business tax cut in the history of our state and will boost our economy.”
Among the Commerce provisions in the bill is an $11 million increase in funding for the Explore Minnesota Tourism (EMT) advertising campaign, which was chief authored by Rep. Ward. The increase is paid for through lower spending for the Commerce Department.
Tourism is an $11.9 billion industry in Minnesota, supporting 240,000 leisure and hospitality jobs, which represents 11 percent of private-sector employment. In addition, tourism generates nearly $769 million in state sales tax revenues, which is 17 percent of Minnesota’s sales tax revenues. From 2003 to 2011, state sales tax revenue from leisure and hospitality grew 41 percent, while those from all other industries grew just 16 percent.
Today, Minnesota’s tourism office funding level ranks 30th nationally and far below regional competitors like Michigan, Wisconsin, South Dakota and Illinois. Wisconsin Dells has a larger marketing budget, just for itself, than EMT does for all of Minnesota. Two independent consultant groups found that EMT marketing campaigns generate almost $8 in state and local tax revenue for every $1 of public funds spent on the ad campaign.
“In our area, tourism affects nearly everyone directly or indirectly,” said Rep. Ward. “By expanding our Explore Minnesota marketing program, we can make Minnesota a priority destination.” We need to do what we can to help keep our tourism industry growing and prosperous because it grows jobs and generate new tax dollars.”
The proposal also contains $750,000 in grants for Enterprise Minnesota — legislation chief authored by Rep. Ward. The grant would go to the Growth Acceleration Program, matching grant that enables small manufacturing companies to access business improvement services.
The bill also contains $30 million to the Minnesota Investment Fund (MIF), $24 million for a job creation fund, and $1.5 million to expand the Minnesota Trade Office.
Reps. Ward and Radinovich encourage constituents to contact them with any questions, comments, concerns, or ideas on any legislative topic. Rep. Ward can be reached by phone at 651-296-4333 or by email at rep.john.ward@house.mn. Rep. Radinovich can be reach by phone at 651-296-2365 or email at rep.joe.radinovich@house.mn.