ALBERT LEA, MN—July 1 marks the beginning of the state's new fiscal year, and what would have been the start of more than $800 million in tax relief for middle-class families over the next three years if not for Governor Dayton's veto of
HF848, the omnibus tax bill. The bill included tax relief for farmers, college graduates paying off student loans, families saving for college, veterans, teachers, homeowners, families paying for childcare, and more.
Rep. Peggy Bennett, R-Albert Lea, issued the following statement urging Governor Dayton to call a special session to deliver overdue tax relief to middle-class families.
"The first of July could have been the start of tax relief for thousands of middle class families around the state," said Bennett. "All political game-playing does is hurt people. We all agree we need tax relief; let's repass this bill in special session to give a much-needed break to working families and individuals, small business owners, farmers, and recent college grads."
Key provisions include (over the next three years):
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$90.6 million in tax relief for Minnesota farmers. In 2016, more than 61,000 farmers would benefit from an ag bond credit.
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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. In 2016, about 52,300 graduates would be eligible for the credit.
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$49 million in tax relief for families who contribute to 529 plans to save for their children's college costs. An estimated 21,000 families would claim the credit in tax year 2016. An estimated 40,400 families would claim the subtraction (some taxpayers would be eligible for both).
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$146 million in tax relief for every small business in Minnesota by exempting the first $100,000 of commercial-industrial property.
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$13 million in tax relief for Minnesota veterans by raising the income eligibility threshold, and increasing the total credit from $750 to $1000.
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$150 million in tax relief for working families by expanding the working family tax credit. Nearly 386,000 families would be affected in tax year 2016.
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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 a $960. For tax year 2016, the number of families receiving the credit would be 41,400.
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Federal conformity provisions that allow Minnesotans to deduct higher education tuition expenses, mortgage insurance premiums, classroom expenses for teachers, charitable giving (for seniors), and more.
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A substantial increase in Local Government Aid (LGA) and County Program Aid (CPA).
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