ST. PAUL – The Minnesota House on Wednesday approved the conference committee report of a tax bill providing $1.15 billion in relief over the next two years, including a $218 million reduction on the state tax on Social Security income.
“We must acknowledge the reason the state has a $1.65 billion surplus is taxpayers have been overcharged,” said Rep. Bud Nornes, R-Fergus Falls. “The tax bill we approved would benefit everyone from families with young ones in child care, to senior citizens, Main Street businesses, farmers, college students and beyond. The bottom line is the House is committed to putting money back in the pockets of those overtaxed Minnesotans and passage of this bill points us in that direction.”
A provision Nornes authored is included, allowing implementation of the half-cent sales tax Fergus Falls residents approved in a referendum last November to fund an addition on and updating of the city library.
Other 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.
- • 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.
- • $35 million in relief for farmers by reducing the burden farmers and agriculture land owners pay for school bond referendums. Approximately 240,000 farmers could receive property tax relief to reduce their disproportionate share of school district debt service.
- • $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.