Tax bill standoff continues as House Republicans, Gov. Dayton stand firm

With the clock ticking toward an omnibus tax bill veto, House Republicans on Monday laid a hard-sell on Gov. Mark Dayton to sign a $259 million tax relief package held up amidst political wrangling over a potential special session.

A one-word error — opening up what was supposed to be a narrow tax break for bingo halls to far more establishments — is not fixable without a special session to fix the law, Dayton contends, and will cost the state’s Vikings stadium fund roughly $100 million over three years. 

But the governor says lawmakers left much unfinished when they adjourned sine die on May 22, and has laid out a list of conditions he says lawmakers must agree to in full before he will call them back to the Capitol.

READ MORE Dayton lays out demands for potential special session

Monday marks the final day Dayton can sign the bill before effectively vetoing it through inaction, in what is known as a pocket veto.

House and Senate Republicans say the error in the bill can be fixed without a special session, and have resisted Dayton’s calls that they agree to additional bonding projects, more General Fund spending and a transportation funding package in order to meet in special session.

“Governor, today is the day,” said Rep. Greg Davids (R-Preston), chair of the House Taxes Committee, during a Monday news conference. 

During the morning meeting with reporters, House Republicans rolled out a parade of Minnesotans whom they say stand to benefit from the tax bill that passed with wide bipartisan support.

House Speaker Kurt Daudt (R-Crown) said a Friday afternoon meeting with Dayton had been a positive one, but continued to resist the governor’s demand that lawmakers concede to his lengthy list of conditions.

“I think everyone can see what’s happening: that the governor is using this as some kind of leverage,” Daudt said.

He added later: “I would hate to see (the bill) go down in some sort of political leverage game.”   

Dayton has said he agrees with many of the provisions in the omnibus tax bill, HF848, which includes relief for farmers, college graduates with student debt, and veterans. It also includes an increase in aid to local governments across the state and a property tax exemption for a proposed Minnesota United FC soccer stadium in St. Paul.

House Minority Leader Paul Thissen (DFL-Mpls) again placed the blame on House Republicans for rushing through major bills, including the tax measures, through the process late in the 11-week legislative session.

“There are many good provisions in the tax bill for ordinary Minnesotans,” Thissen said in a written statement, “but unfortunately, due to the rush job and chaos at the end of session, there is a $100 million error in the bill.”