ST. PAUL – A bipartisan agreement that provides more than $800 million in tax relief over the next three years has been approved in the Minnesota Legislature and is on its way to Governor Dayton’s desk. State Representative Bob Gunther (R-Fairmont) voted in favor of the proposal.
“Considering we had a $900 million surplus at our disposal, we absolutely needed to provide tax relief to the overtaxed residents who created that windfall,” Gunther said.
Gunther said $150 million in tax relief is allocated for working families by expanding the working family tax credit and $32 million to reduce the cost of childcare; $90.6 million in agriculture property tax relief for Minnesota farmers to deal with school bond levies; and $49 million for families who contribute to 529 Plans to save for their children's college costs.
Gunther noted there’s also $146 million in state property tax relief for every Main Street business owner by exempting the first $100,000 of their commercial-industrial property; $13 million for veterans; and $110 million for college graduates paying off student loans through a refundable tax credit up to $1,000 - the first of its kind in the country.
“People in nearly every age bracket would benefit from this tax relief plan,” Gunther said. “There’s no doubt this is the most important bill we passed this session, and I’m hopeful Governor Dayton will sign it into law.”
One proposal that will not be heading to the governor’s desk is a transportation plan. Despite an agreement between the House and Senate to dedicate nearly $700 million to our road and bridge needs without raising taxes, Senate Democrats chose not to approve it because the legislation did not include new funding for light rail.
“It’s really troubling that Senate Democrats destroyed a significant road and bridge funding proposal over their insistence on another train for Minneapolis,” Gunther said. “It’s now up to Governor Dayton to decide whether to bring us back for a special session to address our transportation needs.”