Tax committee strips tax measures from jobs and energy bill

The nearly 200-page omnibus job growth and energy affordability bill lost weight Wednesday.

Rep. Pat Garofalo (R-Farmington), the sponsor of HF843, successfully offered an author’s amendment to delete four provisions with tax implications from the bill. The House Taxes Committee adopted the amendment and, on a divided voice vote, sent the bill to the House Ways and Means Committee, where a hearing is set for Friday.

The provisions removed from the job growth and energy affordability omnibus bill are from:

• HF684, sponsored by Rep. Dan Fabian (R-Roseau), which would allow non-metro communities to create tax-increment financing districts for new workforce housing;
• HF550, sponsored by Rep. Dave Baker (R-Willmar), which would temporarily exempt from sales tax the purchase of propane tanks of 100 gallons or greater capacity;
• HF408, sponsored by Rep. Paul Torkelson (R-Hanska), which would clarify that taxes on wind generation and solar production are not subject to levy limits; and
• HF1478, sponsored by Garofalo, which would exempt purchases of electricity and natural gas from the metropolitan transit area sales tax.

The committee will retain the deleted provisions for possible inclusion in an omnibus tax bill.

The House Job Growth and Energy Affordability Policy and Finance Committee approved the wide-ranging omnibus bill April 9 after three days of public testimony and debate among members.

The companion, SF804, sponsored by Sen. James Metzen (DFL-South St. Paul), awaits action by the Senate Jobs, Agriculture and Rural Development Committee.