A $103.25 million package of tax proposals aimed largely at providing property tax relief during the current biennium passed off the House floor Friday on a 125-0 vote.
Bipartisan support for the bill was ensured with the adoption of several amendments put forward by Republicans.
HF3167 builds on 2013 property tax relief by providing $45 million in fiscal year 2015, with many provisions continuing on through fiscal years 2016-2017. It is sponsored by Rep. Ann Lenczewski (DFL-Bloomington), chair of the House Taxes Committee. The bill now moves to the Senate where Sen. Rod Skoe (DFL-Clearbrook) is the sponsor.
“For the first time in 12 years, Minnesotans will be paying less in property taxes than they did last year,” said Rep. Jim Davnie (DFL-Mpls), chair of the House Property and Local Tax Division. “This bill further enhances the property tax changes enacted last year.”
As an example, he pointed to the $18 million in relief to farmers “who are getting caught between rising farm land values and falling commodity prices.”
Besides addressing property tax relief, the bill includes various community requests to adjust their tools used to spur economic development — tax-increment financing and local sales and use taxes.
A provision added in the House Ways and Means Committee would allow taxpayers a deduction for 2013 for contributions to Philippine typhoon relief made after March 25, 2014, and before April 15, 2014.
Also, in committee, Gov. Mark Dayton’s “Unsession” request to trim the number of property tax classifications was scrapped. Rep. Greg Davids (R-Preston) successfully argued for an amendment to nix the recommendation saying that small businesses would be hurt by the change, including bed and breakfasts and small family-owned resorts.
Other parts of the bill include:
Aids and credits
Rep. Bob Dettmer (R-Forest Lake), retired from the U.S. Army Reserve, successfully proffered an amendment that would exempt military retirement pay from state taxes effective for taxable years beginning after Dec. 31, 2014. This would be limited to $1,500 for each year or portion of a year of military service. In the case of a married couple filing jointly, each spouse would be eligible for this subtraction.
Other Republican amendments successfully attached to the bill include:
The Minnesota Supreme Court has ordered the Legislature and Gov. Mark Dayton to use mediation to resolve a funding dispute. In an opinion issued Friday, the court also ruled that Dayton’s use of the line-item veto to strip biennial funding for the Legislature was constitutional.
A Ramsey County judge on Wednesday ruled that Gov. Mark Dayton’s line-item veto of legislative funding violated the state’s constitution.
House and Senate leadership OK a resolution to seek outside legal representation in an effort to restore funding for the Legislature that Gov. Mark Dayton line-item vetoed earlier this week.
Day three of the 2017 special session saw lawmakers pass final omnibus bills to be sent to Gov. Mark Dayton, with weary House members wrapping up their work at 2:42 a.m. Friday following a week of long days — and nights — at the State Capitol.
Lawmakers on conference committees must sort through competing bills before finalizing a product to send to the governor.
The budget process explained — and why it matters
$45 billion plan is about a 10 percent increase over current biennium
Governor urges lawmakers to pass a big capital investment bill during budget-setting year; House Speaker has expressed doubt over bonding this session
It was a day of selfies, swearings-in and standing ovations as the House opened the 2017-18 biennial session Tuesday.