Focus is on Middle-Class Families, College Students, Veterans & Property Tax Relief
ST. PAUL, MN – On Sunday, the Minnesota House of Representatives approved HF 848, a tax relief package of more than $800 million over the next three years. The bill, which received strong bipartisan support on a vote of 123-10, was chief authored by Rep. Greg Davids (R-Preston) and includes more than half a billion in permanent tax breaks for middle-class Minnesotans.
"Over the past two years, I've continued to say 'don't stop believing,' and today I'm proud that we can deliver significant tax relief for Minnesota families,” said Davids. “From a farmer in southern Minnesota, to a family in the suburbs, to a small business owner on the Iron Range, to a recent graduate at the U of M, this plan provides targeted relief to the middle class throughout the state."
In the next three years, the plan provides tax relief in the amounts as follows:
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$90.6 million in agriculture property tax relief for Minnesota farmers
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$110 million in tax relief for college graduates paying off student loans through a refundable tax credit up to $1,000, the first of its kind in the country.
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$49 million in tax relief for families who contribute to 529 Plans to save for their children's college costs.
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$146 million in property tax relief for every small business in the state by exempting the first $100,000 of commercial-industrial property.
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$13 million in tax relief for veterans by raising the income eligibility threshold, and increasing the total credit from $750 to $1,000.
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$150 million in tax relief for working families by expanding the working family tax credit
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$32 million to reduce the cost of childcare; by expanding the childcare tax credit, families could earn a tax credit up to $960.
“Providing tax relief for the middle-class has been a priority of House Republicans this biennium,” said Speaker Kurt Daudt (R-Crown). “Farmers, veterans, recent college grads, working families, and small business owners will all benefit from this plan. I’m thankful for the leadership of Chair Davids in continuing to fight for middle-class families.”
With a $900 million surplus, leaders in the House and Senate recognized a need to give some of the surplus back to Minnesotans.
“With a budget surplus, it was time to give hardworking Minnesotans an overdue break on their taxes,” said Majority Leader Joyce Peppin (R-Maple Grove). “The passage of this bill represents a compromise and helps right the over-taxation of the previous biennium.”
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