ST. PAUL, MN - The Minnesota House of Representatives has approved a conference committee report that provides $1.15 billion in tax relief to middle-class Minnesotans.
“Tax relief for hardworking Minnesotans has been a top priority of House Republicans this session and with this bill we accomplish just that," said Rep. Matt Grossell, R-Clearbrook. "The bill targets relief at middle-class Minnesotans by beginning to phase out taxes paid on social security income, reducing the burden placed on farmers and land owners for school bond referendums, and providing relief to main street businesses by providing property tax relief. This is a good bill for Minnesotans and I hope the governor will sign it.”
Highlights of the bill include:
- $218 million in relief for Minnesota’s senior citizens by increasing the income limit thresholds for the taxation of social security income. Currently, for married couples income less than $32,000 is exempt and for single filers the first $25,000 is exempt. Under this bill, recipients of social security will be allowed an additional subtraction from taxable income. For married filers, the subtraction is $8,250 dollars, which is reduced by 20% of income over $77,000. For single filers, the subtraction is $6,500, reduced by 20% for income over $60,200. Under this proposal, nearly 322,000 senior citizen tax returns (single and married filing jointly) would receive tax reductions. For example, seniors making $50,000 would see an average tax savings of $425.
- More than $70 million to address college affordability through a first-in-the-nation tax credit for student loan payments, along with subtractions and credits for families saving for college using 529 Savings Plans. 65,000 students will receive an average of a $414 reduction in their taxes through a tax credit for student loan payments.
- $35 million in relief for farmers by reducing the burden farmers and agriculture land owners pay for school bond referendums. Approximately 240,000 farmers could receive property tax relief to reduce their disproportionate share of school district debt service.
- $36 million for families with young children by modifying the child and dependent care credit. A family of four making $50,000 a year will receive an additional $1,200 towards their child care expenses.
- $126 million in relief for hometown businesses by exempting the first $150,000 in property value from the extra tax on businesses and freezing its automatic inflator. This helps every business owner reinvest in their business, protecting 30,000 Minnesota jobs.
- $6 million increase for Local Government Aid and County Program Aid.
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