SAINT PAUL, Minn. – Today, the Minnesota House of Representatives passed the 2023 House Tax Bill. Collectively, the bill delivers the largest tax cut in state history with credits, rebates, and other provisions designed to maximize benefits for workers, families, and seniors. It also addresses years of rising property taxes and underinvestment in local communities.
Rep. Liz Olson (DFL – Duluth) voted for the bill.
“Minnesotans continue to struggle with rising costs and an economy tilted in favor of large corporations and the wealthiest among us. I’m proud my colleagues and I are seizing this moment to pass a bold Tax Bill for Minnesotans,” Rep. Olson said. ”House DFLers are delivering the largest tax cut in state history, with tax cuts and other assistance targeted toward those who will benefit the most. This legislation will reduce property taxes, invest in local communities, and help young families, seniors, and everyone else thrive in our state.”
The bill includes full Social Security state income exemption for those earning less than $100,000 annually (married/joint) or $78,000 (single/head of household). It also includes direct rebates of $275 per person, with an additional $275 for each dependent (up to three) reaching more than 2,562,300 Minnesotans to help them meet day-to-day expenses. In a strong show of support for families, the bill provides for a new and simplified Child & Working Family Tax Credit of up to $1,175 per child which will impact more than one million families and reduce child poverty by 22.9%.
The House DFL’s Tax bill delivers $648 million of property tax cuts and direct assistance to local communities, including measures to reform the Renter’s Property Tax Refund program, incorporating the credit onto income tax filings, resulting in an additional $378 million back to renters over the next two years. The bill also includes expansion of the Homestead Credit Refund, targeting an additional $41 million of assistance over the biennium to homeowners who will benefit the most. It also contains an additional $100 million for Local Government Aid and $100 million for County Program Aid to help local communities deliver critical public services while keeping property taxes in check.
The benefits to Minnesotans under the legislation are paid for through the state’s historic surplus and new revenue from both multinational corporations and the very wealthiest in the state. The bill includes a new millionaires tax on the top .8% of earners a new highest rate of 10.85% for those earning $1 million (married/joint), $600,000 (single) or $800,000 (head of household). The second is a worldwide reporting requirement for multinational corporations, allowing Minnesota to close a loophole and rightfully capture corporate profits hidden in offshore tax havens.
The Minnesota Senate will soon consider its version of the Tax bill.