Dear Neighbor,
We are wrapping up another busy week in St. Paul and a couple of bills I have authored received committee hearings in recent days.
One bill I authored would compensate landowners for property that has been consumed by the expansion of state buffer zones around water. This bill would provide landowners with compensation at the going rate in their county for land they were forced to take out of production. Time ran out on the committee meeting before all those who wished to ask questions about the bill had a chance, so it was tabled until it can be brought up again later to finish the discussion.
Another bill of mine would extend a tax credit to help rebuild a section of downtown Melrose that was devastated by fire in 2016. This bill would extend sales tax exemptions for rebuilding properties, along with extending remediation grants. The goal is to help draw interest from developers so downtown Melrose can be rebuilt instead of remaining vacant.
The first step in assembling a new state budget took place this week as the governor put forward his proposal for the next two-year cycle. It includes more than $3 billion in tax increases over the next two years alone, and $4.7 billion in tax increases for 2022-23.
The thing that stands out most to me is the governor is looking to raise our gas tax by 20 cents per gallon, a 70-percent increase over the current level. It would move our state’s gas tax from 28th nationally all the way up to fourth.
This is very concerning to me and it would prove to be very costly to people in Greater Minnesota, especially those with lower incomes. This impact would not only be felt at the pump, but also through increased costs for goods and services that incur transportation costs – especially those related to the ag. industry.
The governor’s plan also includes increases to tab fees, the motor vehicle sales tax, the metro area sales tax, business taxes, and reinstatement of the sick tax, which is set to expire at the end of the year, adding $1 billion to the cost of health care for Minnesotans over the next two years.
Minnesota’s next full economic forecast will come out soon and those numbers will serve as the framework for the House and Senate to come out with their own separate budget plans. The last full forecast in November called for a $1.5 billion surplus, but revenue has been down a bit since then. We’ll see what shows up on the next report.
Attended a soybean growers event this week in St. Paul and enjoyed hearing more about a proposal to build a new processing plant by Crookston. I look forward to seeing how this evolves.
Have a good weekend and be safe on the snowy roads, especially with the potential for more flurries in the forecast.
Sincerely,
Paul