Legislative UpdateDear neighbors, It has been another busy week here at the Capitol with committee’s and floor sessions. One of the biggest topics in the Taxes committee this week was the Governor’s budget and his proposed “tax decreases”. The House Democrats are saying they will be cutting taxes, while The House Republicans are saying the Govenor’s budget increases taxes. So, I wanted to clear this up because two things that are totally opposite can be true at the same time. Here’s what’s happening: A Sales Tax Cut: The Governor’s budget says sales tax is going down by 0.75%, which may sound like good news. But in order to make up for the 0.75% loss other taxes will be going up. While the sales tax may be decreasing, taxes in other areas or services will increase to make up for it. So, while the DFL may be saying that they are decreasing sales tax they will actually be shifting this loss to other areas causing higher taxes for everyone in our community. Property Owners Could See Higher Costs: The Govenor’s budget also has many unfunded mandates. These unfunded mandates mean the state requires them but doesn’t provide money to pay for them. Counties are now responsible for paying for new programs, like paid family leave and safe and sick leave due to these mandates. Unfortunately, since counties will be responsible that will lead to higher property taxes for our communities. House Republicans are fighting hard against these unfunded mandates and increased taxes because you deserve to keep your hard-earned money, and I will continue to advocate for our communities. |