ST. PAUL, MN - The Minnesota House of Representatives has approved a conference committee report that provides $1.15 billion in tax relief to middle-class Minnesotans.
“For our senior citizens, college students, farmers, small business owners and families, their tax relief is one step closer to reality,” said House Tax Chair Greg Davids (R-Preston). “With our budget surplus this session, we must provide tax relief to the middle class Minnesotans that need it.”
“Main Street business owners and farmers have been unfairly burdened with outrageous property tax demands over the years, and this legislation is an excellent first step in addressing the problem,” said State Representative Steve Drazkowski (R-Mazeppa), chairman of the Minnesota House Property Tax and Local Government Finance Division.
Highlights of the bill include:
$218 million in relief for Minnesota’s senior citizens by increasing the income limit thresholds for the taxation of social security income. Currently, for married couples income less than $32,000 is exempt and for single filers the first $25,000 is exempt. Under this bill, recipients of social security will be allowed an additional subtraction from taxable income. For married filers, the subtraction is $8,250 dollars, which is reduced by 20% of income over $77,000. For single filers, the subtraction is $6,500, reduced by 20% for income over $60,200.
More than $70 million to address college affordability through a first-in-the-nation tax credit for student loan payments, along with subtractions and credits for families saving for college using 529 Savings Plans. 65,000 students will receive an average of a $414 reduction in their taxes through a tax credit for student loan payments.
$34 million in relief for farmers by reducing the burden farmers and agriculture land owners pay for school bond referendums
$36 million for families with young children by modifying the child and dependent care credit. A family of four making $50,000 a year will receive an additional $1,200 towards their child care expenses.
$126 million in relief for hometown businesses by exempting the first $150,000 in property value from the extra tax on businesses and freezing its automatic inflator.