ST. PAUL – With only five weeks remaining in the 2016 legislative session, State Representative Greg Davids (R-Preston) said a comprehensive taxes proposal that provides relief to farmers and small business owners is beginning to take shape.
"Last session the House and Senate each passed a version of taxes legislation, and it currently sits in a conference committee comprised of members from both bodies that are asked to work out a compromise," Davids said. "As co-chairman of this conference committee, I'm working very closely with Senate Democrats in hopes of reaching an agreement that prioritizes those who make their living off the land and on the Main Streets of rural Minnesota."
As part of the House tax relief proposal that Davids is championing, the State General Tax would be repealed on the first $500,000 of value for every Minnesota small business. Davids said this is a tax that costs rural Minnesota business owners thousands of dollars every year.
"You're not going to find a tax relief proposal that benefits the rural store owner more than this," Davids said. "Let's be clear, if you have a million dollar company in Minneapolis, you're still going to pay the tax. But if you own an auto parts store in Fillmore County or a bakery in Houston County and your business is valued at $500,000 or less, your State General Tax obligations would go away."
Davids, who was born and raised on a family farm, said his bill would also assist farmers. Under his plan, school construction property tax liabilities for every rural landowner would be cut in half. Davids said this could save farmers tens of thousands of dollars depending on the amount of acres they own.
"In many instances I've heard from farmers who want to support a school levy, but ultimately don't, because it costs them ten times more than a city homeowner," Davids said. "This could tremendously ease the financial burdens of our farmers."
Davids said he expects both provisions to receive significant debate in the taxes conference committee over the remaining weeks of the legislative session.
"These are common sense initiatives that will strengthen and solidify Greater Minnesota towns, and I look forward to continue fighting for them," Davids concluded.