Highlights of the House Omnibus Tax Bill
Minnesota State Capitol
KSTP File Photo
The Minnesota House of Representatives passed a tax bill early Monday morning that aims to balance the budget. The bill asks the state's wealthiest taxpayers to pay for education, property tax relief and job creation. Below are highlights of the bill:
- $400 million in property tax relief for the middle class through the Homestead Credit Refund, an expanded Renter's Credit and increased aid to local government.
- Institutes a one year levy limit for certain cities and counties, holding most new local levies to 3 percent or less.
- $234 million per-pupil increase in school funding formula.
- $485 million for E-12 education for all-day kindergarten, preschool scholarships and new funding for every Minnesota school.
- $250 million for higher education, including a tuition freeze at the University of Minnesota and MnSCU schools, plus significant new resources for the student grant program.
- $89 million for jobs and economic development to promote private sector job creation throughout the state.
- Aims to close the $626 million budget deficit.
- Raises the income tax rate to 9.85 percent on the wealthiest 2 percent of taxpayers, with income greater than $250,000 a year for joint filers.
- Increases the user-based fees on cigarettes by $1.60 per pack to $2.83 per pack - catching up with Iowa, South Dakota and Wisconsin.