ST. PAUL, MN - The Minnesota House of Representatives has approved a conference committee report that provides $1.15 billion in tax relief to middle-class Minnesotans.
"This bill gives $1.1 billion in tax relief for folks in every stage of their lives," said Rep. Glenn Gruenhagen (R- Glencoe). "The tax burden in Minnesota has long been crushing our citizens under its weight, and this relief is a fulfillment of Republican's promise to roll-back the over-taxation on our hard working citizens. I am pleased both the House and Senate an agreement on this bill, and I encourage you to call Governor Dayton's Office at (651)201-3400 and ask him to sign this bill one it is passed."
Highlights of the bill include:
$218 million in relief for Minnesota’s senior citizens by increasing the income limit thresholds for the taxation of social security income. Currently, for married couples income less than $32,000 is exempt and for single filers the first $25,000 is exempt. Under this bill, recipients of social security will be allowed an additional subtraction from taxable income. For married filers, the subtraction is $8,250 dollars, which is reduced by 20% of income over $77,000. For single filers, the subtraction is $6,500, reduced by 20% for income over $60,200.
More than $70 million to address college affordability through a first-in-the-nation tax credit for student loan payments, along with subtractions and credits for families saving for college using 529 Savings Plans. 65,000 students will receive an average of a $414 reduction in their taxes through a tax credit for student loan payments.
$34 million in relief for farmers by reducing the burden farmers and agriculture land owners pay for school bond referendums
$36 million for families with young children by modifying the child and dependent care credit. A family of four making $50,000 a year will receive an additional $1,200 towards their child care expenses.
$126 million in relief for hometown businesses by exempting the first $150,000 in property value from the extra tax on businesses and freezing its automatic inflator.