Updated: 04/04/2014 7:12 PM KSTP.com By: Cassie Hart
Minn. House Democrats passed their “Tax Bill 2” Friday on a unanimous vote of 125-0.
Tax Bill 2 includes $103 million in further tax cuts for Minnesota homeowners, farmers, renters and businesses.
“We were pleased that we moved forward so quickly this session to cut taxes for more than one million Minnesotans, but we have more work to do this session to continue making progress,” said Rep. Ann Lenczewski, House Taxes Committee Chair. “This second tax bill focuses on ways to make further reductions in property taxes for homeowners, renters and farmers. We believe this is a responsible way to continue expanding our economy from the middle-out while maintaining our stable budget into the future.”
The tax bill signed into law this session by Governor Dayton made reduction to middle-class income taxes, largely through federal tax conformity. This second tax bill will cut taxes largely through further property tax relief. Tax Bill 2 includes $45 million in targeted property tax relief to Minnesota homeowners, renters, and farmers.
This property tax relief builds on progress from last session.
Property taxes should decrease this year for the first time in more than a decade, according to lawmakers. Homeowners, in particular will see a $161 million decrease in property taxes this year.
The House tax bill includes tax relief for Minnesota small businesses. The bill provides a property tax cut for small businesses with property value less than $1.1 million by excluding all commercial and industrial property value less than $150,000 from the statewide general property tax. The bill also includes sales tax reforms that provide additional sales tax relief to small businesses.
The bill also provides tax relief to our active military members. The bill extends our active military income tax subtraction to National Guard service members in the Active Guard Reserve.