Rep. Paul Anderson's measure to aid Melrose in recovery from fire included
ST. PAUL – The Minnesota House on Thursday approved a bill providing $1.35 billion in tax relief over the next two years, including a $270 million reduction on the state Social Security income tax.
The tax package also includes a provision Rep. Paul Anderson, R-Starbuck, authored to help Melrose recover from a fire. Anderson’s legislation would provide a total of $1.39 million in assistance and tax exemptions on rebuilding costs after several structures suffered damage when a significant portion of a city block burned last September.
The reduction on Social Security taxes is the single-largest relief provisions in the House’s omnibus tax bill (H.F. 4). Anderson said the relief for seniors – along with tax reductions on agricultural land and business properties – are highlights of the House proposal, which provides more relief than plans offered by either the governor or the Senate.
“The tax bill we passed has a lot of key provisions for Minnesotans,” Anderson said. “I think maybe at the top of the list is help for folks on Social Security. Up to certain income levels, state income taxes will be cut back, so that’s certainly a good provision for people on retirement.”
Other provisions in the bill include $42 million to reduce the burden agriculture land owners pay for school bond referendums. Farms also would benefit from a measure conforming the state death tax to the federal exclusion.
Hometown businesses would see $203 million to reduce the extra state property tax on businesses, exempting the first $200,000 in property value from the extra tax on businesses and freezing its automatic inflator.
Middle-class families would benefit from $35 million going toward modifying the child and dependent care credit. A family of four with childcare expenses would be estimated to receive $660 in relief.
More than $125 million would be put toward addressing college affordability. Families saving for college using 529 Savings Plans will benefit from expanded subtractions and credits. In addition, 77,500 students will receive, on average, a $640 reduction in their taxes through a first-in-the-nation tax credit for student loan payments.
“Tax relief is a top priority for the House majority this session, so it is good to see our package receive approval relatively early in the session,” Anderson said. “This bill would be a great help in lessening the tax burden middle-class Minnesotans are feeling.”
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