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Legislative News and Views - Rep. Matt Bliss (R)

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House passes tax bill and other news

Friday, May 4, 2018

Dear Neighbor,

The House has been busy taking up several supplemental finance bills as we hit the final stretch of the 2018 session. The first big bill we took on this week was a tax bill, which we passed on Monday.

The bill would simplify Minnesota’s tax code and provide additional tax relief to middle-class Minnesotans. It also would bring the first income tax rate cut for Minnesotans in nearly two decades by reducing the second tier income tax rate.

It’s a good day when House members can come together in support of tax relief for Minnesota’s middle class. The House tax bill is a good one and the bipartisan support for middle-class tax relief that has been generated should provide a clear message to the governor that his plan to unnecessarily raise taxes on households of all income levels is a non-starter.

Without the House tax bill, conforming to the federal tax code would cause nearly 970,000 filers to pay more. Instead, the House bill provides the first income tax cut in nearly 20 years and more than 2.1 million Minnesota filers would benefit from a tax cut in tax year 2018.

The House also this week passed a supplemental budget bill with transportation components. Last session we led to law the largest transportation investment in state history without raising taxes. The House continues to prioritize roads and bridges and a bill we approved this week puts $385 million more toward transportation needs this year.

This includes:

  • $250 million for highways statewide through Trunk Highway bonds
  • $145 million in Trunk Highway bonds and $10 million in cash for Corridors of Commerce program projects
  • $25 million for county roads, $6.6 million for city roads, $2 million for township roads
  • $7 million for Small Cities Assistance Program for cities under 5,000
  • $75 million for trunk highway rail grade separation projects
  • $9 million to deputy registrars for MNLARS reimbursement aid
  • Establishes the Freight Rail Economic Development Program
  • Defines the operating costs definition for LRT spending

On a separate transportation note, Highway 371 construction is in the top one-third of MnDOT’s list of priorities. This basically means that 371 is on MnDOT’s radar and, while nothing is imminent, we need to continue allowing the task force to do its job and then be prepared to make some decisions so we have consensus whenever MnDOT comes calling. We have time to plan and a responsibility to get it right, so let’s stay on task.

We only have a couple more full weeks before adjourning at the Capitol, so stay tuned and I will keep you up to speed as best I can. Your input always is welcome.

Sincerely,

Matt