ST. PAUL, MN – Governor Dayton will soon decide whether or not to provide middle-class Minnesotans with $1.15 billion in tax relief according to State Representative Jason Rarick (R-Pine City). Rarick voted in favor of the proposal which had been crafted by a joint House/Senate conference committee.
“From the beginning, the goal of this bill was to target the middle class and give them the tax relief they need,” Rarick said. “I’m pleased this House/Senate compromise will benefit hundreds of thousands of Minnesotans, and am hopeful the governor will consider signing it.”
Rarick highlighted how middle-class Minnesotans would benefit under this proposal:
- early 322,000 senior citizen tax returns (single and married filing jointly) would receive tax reductions by increasing the income limit thresholds for the taxation of social security income. For example, seniors making $50,000 would see an average tax savings of $425.
65,000 students will receive an average of a $414 reduction in their taxes through a first-in-the-nation tax credit for student loan payments.
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Approximately 240,000 farmers could receive property tax relief to reduce their disproportionate share of school district debt service by reducing the burden they pay for school bond levies.
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Families of four making $50,000 a year will receive an additional $1,200 towards their child care expenses by modifying the child and dependent care credit.
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Every Main Street business owner will see relief by exempting the first $150,000 in property value from the extra tax on businesses and freezing its automatic inflator.
Rarick also noted that the proposal includes a $6 million increase for both Local Government Aid and County Program Aid.