Last week the House introduced our tax omnibus bill, and it should be introduced on the House floor for debate shortly. Our tax bill will provide Minnesotans with $1.35 billion in tax relief, which is long overdue and will help counter the destructive policies of Governor Dayton and his fellow Democrats over the last several years.
One of the important elements of our tax bill is a subtraction for seniors on social security benefits below certain income levels. The current subtraction is available for individuals making up to $25,000 per year and couple making $32,000. Our proposal would raise these levels over the next two years to allow for individuals with an income of $56,000 per year and married couples making $72,000 to benefit from the subtraction by 2019. This is exactly the middle class tax relief our state needs.
There are also measures in our bill that will benefit parents saving for college using a 529 plan, and a first in the nation tax reduction for college students paying their student loans.
Small businesses will also see a reduction in the extra property tax imposed on commercial properties by the state, with our bill making the first $200,000 in property value tax-exempt and freezing the automatic inflator.
This bill addresses the concerns of our farming community as well by conforming the state death tax to the federal exclusion, and by putting $42 million into reducing the disproportionate tax burden farmers pay in school board referendums.
Our citizens have been overtaxed for far too long, as the growing budget surplus has proven over the last couple of years. Our tax bill includes a number of provisions that were supported last year by 89% of both legislative bodies, but was ultimately vetoed by Governor Dayton. I will keep you informed as to the status of these provisions once the bill is brought to the House floor for debate.