ST. PAUL – On a bipartisan vote of 90-38, the Minnesota House of Representatives has approved legislation that simplifies Minnesota’s tax code to fully benefit from federal tax reform and provides additional tax relief to middle-class Minnesotans.
State Representative Jason Rarick (R-Pine City) voted in favor of the proposal.
“The governor’s plan basically increases taxes on every Minnesotan and repeals many of the tax breaks we did last year,” Rarick said. “Under the House tax plan, 2.1 million Minnesota filers will see a tax decrease.”
Rarick said the bill delivers the first income tax cut in nearly 20 years by reducing the second tier income tax rate from 7.05% to 6.75% by tax year 2020.
Other highlights include lowering taxes for people at all income levels by increasing the standard deduction for all filers; protecting families by preserving a state personal and dependent exemption of $4,150; encouraging affordable homeownership by allowing a state-itemized deduction of up to $30,000 in property taxes; and supporting hometown businesses and farmers by reinvesting extra revenue from corporate tax changes into Section 179 conformity and overall rate reductions.
Rarick said the bill now heads to the Minnesota Senate for its approval.