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Legislative News and Views - Rep. Laurie Halverson (DFL)

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Minnesota House Passes Tax Cut Bill, Includes Legislation Authored by Rep. Halverson to Repeal Warehouse Tax

Thursday, March 6, 2014

St. Paul, Minnesota — Today, the Minnesota House of Representatives passed HF 1777, a bill that cuts taxes for middle-class Minnesotans and repeals three businesses-to-business taxes, including the warehouse tax. State Representative Laurie Halverson (DFL – Eagan) was the chief author of legislation to repeal the warehouse tax and her bill was included in the larger omnibus bill.

“Repealing the warehouse tax has drawn broad bipartisan support and I’m pleased that through working with the business community, constituents, and legislators on both sides of the aisle, we were able to pass its repeal today,” said Rep. Halverson. “It’s my hope now that the Senate passes the repeal so Governor Dayton can sign it before this tax goes into effect on April 1.”

The bill also repeals the commercial equipment repair (including farm machinery) and telecommunications equipment taxes. The Legislature is able to repeal these taxes in a fiscally responsible manner because the state has a $1.2 billion budget surplus.

The legislation also includes $200 million in tax cuts for middle-class families through federal conformity. Those tax cuts include:

  • $111 million for middle income married families by eliminating the “marriage penalty”
    • 650,000 families will see an average tax decrease of $115
    • The vast majority of families claiming the standard deduction make less than $75,000
  • $36 million for low income working families by matching the state’s Working Family Credit with the federal Earned Income Tax Credit (EITC)
    • More than 50,000 working families will see an average tax decrease of $300
  • $7.2 million for homeowners that refinanced or had a short sale
  • $3.9 million for new homeowners through deduction of mortgage insurance premiums
    • 80,000 new homeowners will see an average tax cut of $60
  • $26.4 million for students and parents paying for college and students paying off loans
  • $1.8 million for Minnesota families with dependents
    • 25,000 families with household incomes below $38,570 will see a $65 tax decrease
  • $400,000 for adopting who receive adoption assistance from employers
  • $1.1 million for 60,0000 teachers with the classroom expense deduction for educators
  • $4 million for charitable contributions
  • $1.8 million for Minnesota families with dependents 
    • 25,000 families with household incomes below $38,570 will see a $65 tax decrease
  • $6.7 million for businesses - to make tax filing simpler for businesses
  •  (Source: Non-partisan House Research)

Whenever Congress changes federal tax law, the Legislature must decide whether to conform to the changes at the state level or not. The state did conform to federal changes for the 2012 tax year. Last session, Rep. Halverson co-authored a bill for federal tax conformity for tax year 2013 and beyond. However, this did not end up in the final budget signed into law.

“With a strong surplus and Minnesotans already filing their taxes, we need to move quickly to enact these middle-class tax cuts,” said Rep. Halverson. “Nearly one million Minnesotans would receive a tax cut through this legislation. We need to continue working together to make progress and expand economic opportunity for all Minnesotans.”

Rep. Halverson encourages constituents to contact her with any comments, questions, concerns, or ideas on any legislative topic. Rep. Halverson can be reached by phone at 651-296-4128 or by email at rep.laurie.halverson@house.mn.