ST. PAUL – Area cities will receive Local Government Aid increases in 2006 under new tax laws passed by the Legislature. State Representative Dean Urdahl said increasing aid for Greater Minnesota was a priority for all legislators this year.
“We made it very clear throughout the session and during budget negotiations that we have to help our cities,” said Urdahl, R-Grove City. “I am very pleased we could pass such significant increases for local communities.”
Increases for area cities are as follows:
Howard Lake $11,256
Eden Valley $22,080
Grove City $23,511
Numbers indicate the increase over what cities would have received in 2006 had the new tax law not been passed. Statewide Local Government Aid will increase $48 million in 2006, including a $6 per-capita increase for cities with less than 5,000 people.
Urdahl also highlighted other new tax laws, including a change to the K-12 education tax credit. He said parents will benefit from investing in their children’s education because the Legislature removed the $2,000 per family limit on the K-12 education tax credit. The maximum per-child credit is still $1,000, but for an unlimited number of children.
“Teachers also stand to benefit because we extended the $250 credit for out-of-pocket classroom expenses,” Urdahl said.