Minn. House Debates Omnibus Tax Bill
The Minnesota House on Wednesday debated an Omnibus Tax Bill.
Watch the live debate by Minnesota lawmakers about the omnibus tax bill.
- Pays back the $854 million IOU to Minnesota schools through a temporary income tax surcharge on only the wealthiest 0.5 percent of Minnesotans (taxable income greater than $500,000 per year for joint filer).
- Closes the $627 million budget deficit and provides a structurally balanced budget into the future without shifts or deficits.
- Raises new revenue to make overdue investments to build a prosperous Minnesota future, including a historic $700 million investment in education from “cradle to career” and $270 million in middle class property tax relief.
- Provides $270 million in middle class property tax relief.
- Provides direct property tax relief for nearly 1 million Minnesotans through the Homestead Credit Refund, retooled renters’ credit and increased funds to cities and counties.
- 380,000 homeowners and renters will see their refunds increase.
- 200,000 additional homeowners will receive a refund.
- Includes the largest LGA reform in a decade to provide $110 million in need-based aid to cities and counties after years of cuts to local services such as police and fire.
- Raises income tax rate to 8.49 percent on the wealthiest 1.1 percent of individuals (taxable income greater than $400,000 per year for joint filer). This increase would only affect 3.3% of businesses.
- Aims to eliminates corporate loopholes that allow corporations to shelter profits overseas and eliminates other subsidies that are outdated, ineffective, or that Minnesota can no longer afford.
Economic Development and Job Creation:
- Creates Minnesota jobs and economic development through investments like the Rochester Destination Medical Center (25,000-35,000 jobs) and Bloomington Mall of America Expansion (thousands of permanent and construction jobs)
Businesses Tax Relief:
- Aims to levels the playing field between Minnesota bricks and mortar retailers and online retailers with the affiliate nexus.
- Simplifies taxpaying with an upfront exemption for capital equipment
- Improves the Angel Investor Tax Credit and the Historic Credit.
- Conforms to federal laws to make filing taxes easier for businesses.
Tobacco and Alcohol Fees:
- Increases the user-based fees on cigarettes to $2.83 per pack and catches Minnesota up with Iowa, South Dakota and Wisconsin who all have a higher cigarette tax.
- Increases the user-based fees on alcohol by 7 cents per beer. The alcohol tax hasn’t been raised since 1986 and alcohol use costs the state billions in alcohol abuse services, criminal justice expenses and health care services annually.
- If a person had a beer per day, the increase in alcohol tax would cost $25 per year.
Tax Relief for Veterans:
- Creates a veterans jobs tax credit for Minnesota businesses and expands income tax credit for veterans.
Other bills being debated today include:
HF1444 (Hornstein) Omnibus Transportation Finance bill.
HF1451 (Winkler) I-35W bridge remnant steel disposition provided for.
HF1510 (Nelson) Hennepin County; county contract provisions updated and technical corrections made.
HF738 (Isaacson) Metropolitan Council miscellaneous technical corrections made, and obsolete language removed and modified.