With five days left in the legislative session, the House cleared one of the biggest hurdles it had heading into 2018: conforming Minnesota’s tax code to the recent overhaul in Washington, D.C.
Gov. Mark Dayton, a DFLer, said Monday he wouldn’t sign the bill unless the Republican-controlled Legislature approved emergency funding for schools, a proposal the governor offered on May 1 – 19 days before lawmakers are constitutionally required to finish their jobs.
Mentioning the conference committee took out items the governor didn’t like during negotiations, Rep. Greg Davids (R-Preston), the bill sponsor, said, “This is a bill clearly that the governor could sign and should sign. … This is a great bill. It is a masterpiece, as you’ve heard.”
The agreement calls for first-tier tax rate to drop from 5.35 percent to 5.3 percent in tax years 2018 and 2019 and 5.25 percent beginning in tax year 2020. The second-tier tax rate would drop from the current 7.05 percent to 6.95 percent in tax years 2018 and 2019 and 6.85 percent beginning in tax year 2020.
The changes would result in a $137.1 million revenue decrease this biennium and $341.1 million in the next.
Davids claims 99.8 percent of Minnesotans would see tax reductions or be “held harmless” by the changes.
Rep. Jim Davnie (DFL-Mpls) pitted the bill as a break for corporations on the backs of Minnesota’s education system. He wasn’t alone.
“Unfortunately, this bill went in the wrong direction,” said Rep. Paul Marquart (DFL-Dilworth), who voted for the bill the first time but voted against it on Tuesday. “We have to create a win for our working families, and this bill simply doesn’t do that.”
Introduced in March 2017 by Rep. Mary Kunesh-Podein (DFL-New Brighton) and Sen. Carolyn Laine (DFL-Columbia Heights), HF2470/SF2259, aims to stop the cycle of opioid misuse and addiction through education.
The conference committee tasked with hammering out the differences that divide the House and Senate on a laundry list of major issues met for the first time Tuesday afternoon.
Republican legislative majority offers mixed reactions to proposed tax system overhauls and DMV fixes.
The latest numbers are a $517 million swing from the November forecast
The state’s latest economic forecast projects a budget deficit of $188 million for the current two-year biennium, and a $586 million deficit for the 2020-21 biennium
The budget process explained — and why it matters