Families, Students, Aging Adults, Veterans, Farmers, Job Creators & Innovators Benefit from Tax bill
Saint Paul- House Speaker Kurt Daudt (R-Crown), House Majority Leader Joyce Peppin (R-Rogers), House Taxes Committee Chairman Greg Davids (R-Preston) and House Property Tax & Local Government Chairman Steve Drazkowski (R-Mazeppa) announced the House Republican Omnibus Tax bill (House File 848) Monday including $2 billion in tax relief to middle-class families, college students, aging adults & veterans, farmers and job creators & innovators
The most significant part of the package – a new Minnesota personal or dependent tax exemption – could save a middle-class family of four more than $500 over the next two years.
“While the state has a projected budget surplus, most Minnesotans are not seeing a surplus in their own budget. The new House Republican majority has listened to Minnesotans and worked toward solutions that bring government spending more in line with family budgets. We can invest in our priorities like education, roads and bridges, put money away in the rainy day fund and still provide significant tax relief to hardworking Minnesotans,” said Speaker Daudt.
“Our priority in this tax relief package is clear: middle-class Minnesota families. Creating a new Minnesota personal or dependent tax exemption could save a middle-class family of four more than $500 over the next two years. We’ve also directed dollars toward families with pre-kindergarteners to high school seniors through expanded education deductions. And for that next step, we’re allowing families saving for higher education costs to deduct their contributions,” added Majority Leader Peppin.
Highlights in House File 848 include:
• 2,045,000 Minnesotans could receive relief through a NEW state version of the personal or dependent exemption on tax returns equal to 25 percent of the federal exemption.
• 366,500 aging adults living on fixed income could receive relief from the phasing-out of the tax on social security.
• 240,000 farmers could receive relief through a property tax credit that reduces their disproportionate share of school district debt service.
• 130,000 families with pre-kindergarteners could receive relief through the expansion of the education deduction to include pre-kindergarten expenses.
• 109,500 college students could receive student loan debt relief through a NEW tax credit for principal and interest loan payments on student loans.
“After two years of massive tax increases some Minnesotans have given up all hope, but with the 2015 House Republican tax bill, I’m here to tell those taxpayers: don’t stop believing. Students pursuing degrees at colleges and tech schools, aging adults who are planning for their future, families with young children and innovators working to grow jobs in Minnesota are among those who will finally see some relief,” said Chairman Davids.
“We traveled to a dozen communities across our state, listening to Minnesotans’ property tax concerns. We repeatedly heard about the unbearable property taxes being placed upon farmers and small business owners. This legislation lowers the property tax burden on rural landowners, helping ensure that our state’s farmers can pass on the family farm to the next generation. It also phases out the statewide general property tax, to help our state’s struggling small businesses survive, and hopefully thrive. As legislators, we are sent to St. Paul to solve the problems Minnesotans care about and this bill does just that,” concluded Chairman Drazkowski.
The Omnibus Tax bill is scheduled to be heard in the House Committee on Taxes this week before heading to the House Committee on Ways and Means.