Today the House passed legislation that brings Minnesota’s tax code in alignment with some provisions of the federal tax code in tax year 2013, with the other major provisions starting in 2014. This bill also repeals the sales tax on commercial/industrial repair, warehousing and telecommunications machinery and equipment starting April 1, 2014.
Last year, House Republicans voted unanimously against these tax increases and I’m glad Democrats have come to their senses to provide this tax adjustment. While Republicans weren’t part of the problem, we’re happy to be part of the solution.
The bill is a good start, but falls woefully short considering there is a $1.2 billion surplus. Notably absent items:
These are not tax cuts we are passing today - the net result of the adjustments in this bill is still a $1.7 billion tax increase for the biennium.
I wish we could have done this sooner. Some Republicans had suggested we come together during special session in 2013 to repeal these job-killing business-to-business taxes. Unfortunately, the Democrat leadership and Governor Dayton wouldn’t agree to it. I was disappointed to learn this week the reason for Democrats’ delay in passing this bill was due to an internal Democrat dispute about a wasteful, lavish, $90 million office complex for politicians. Minnesotans should expect better of their elected leaders.
As, always, I’m interested in your feedback. Please feel free to contact me by e-mail at Rep.Peggy.Scott@House.MN or contact my office at 651-296-4231. You can also send me mail to my office address: 201 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155.