Dear Neighbor,
Before we get to legislative business, I want to wish you a happy and safe Independence Day weekend. Remember to support our local businesses and, thanks to a new law, this Sunday will be the first that liquor stores can legally be open for business (as long as local governments have updated their ordinances).
The change in Sunday sales is one of numerous changes which take effect July 1 when the new fiscal year begins. Other highlights include $6.5 billion in transportation funding and a 2-percent increase in K-12 funding each of the next two years.
New transportation law directs taxes that already are collected on rental cars, leased cars and the purchase of auto parts to roads and bridges instead of the general fund. There is a $300 million increase in General Fund spending for transportation, $940 million in bonding and a $75 annual surcharge on electric motor vehicles set to take effect. Almost $1.9 billion of the transportation funding is appropriated for the construction, reconstruction and improvement of state highways. Additional funds are used for design and engineering work along with construction project management. The $300 million increase for roads is provided over two years, including:
- $16 million for cities under 5,000 citizens
- $102 million for trunk highways
- $48 million for counties
- $15 million for cities
Over the next four years, Beltrami ($2 million), Cass ($1.8 million), Itasca ($2.9 million) and Hubbard ($1.2 million) will receive significant increases in road funding. Bemidji will receive more than $212,000 in new local street aid during that span. The small-city funding will help many towns in the region. Walker, for instance, is set to receive nearly $28,000 more over the next two years alone for road repairs.
The K-12 education budget which is set to take effect includes more than $1.3 billion in increased funding (2 percent more each of the next two years as requested by our schools) with key reforms. Bemidji will receive approximately $2.7 million in new funding the next two years, while Cass Lake-Bena ($673,669) and Walker-Hackensack-Akeley ($360,903) are other examples of local funding increases.
While tax changes do not take effect specifically on July 1, the 2017 tax bill brings $650 million in tax relief to Minnesota families over the next two years, and $790 million in 2020-2021. The following highlights all are in effect for either tax year 2017 (for filings made in 2018), or in calendar year 2018 (the property tax provisions):
- Social security tax relief for nearly 284,000 senior citizen tax returns (single and married filing jointly)
- Property tax relief for small business owners by eliminating the state property tax on the first $100,000 of value on commercial real estate
- An increased child care tax credit so a family of four making $50,000 will get $1,200 more
- A student loan credit that will give 65,000 students an average of a $414 reduction
- A 40% reduction in school levy property taxes on farmland
A full rundown of new laws starting July 1 can be found at this link. Look for more news soon and, again, have a good Fourth of July.
Sincerely,
Matt