Dear Neighbor,
There is much happening at the Capitol as we continue making our way through omnibus finance season in the House.
Before we get to those notes, I want to start this newsletter by recognizing Pope County Sheriff Deputy Josh Owen, who sadly was killed in the line of duty last weekend in Cyrus. My most sincere condolences go to those close to Deputy Owen. I hope his family, friends and co-workers in law enforcement find comfort during this difficult time. Rest in peace, Deputy Owen, and may your legacy remain alive for all of time. His funeral is Saturday.
Bipartisan veterans bill approved
In a refreshing change from the many controversial bills that have come to the House floor this session, a veterans and military affairs finance package received approval without opposition this week. It stands as an example of the good work that can be done when we just focus on doing good work and leave aside partisanship.
The bill (H.F. 1937) provides $367.7 million for programs to help veterans over the 2024-25 biennium, a $167 million (52%) increase. This includes $73.3 million for the Dept. of Military Affairs and $294.3 million for the Dept. of Veterans Affairs. This includes operational funding for three new veterans homes.
Provision would harm e-pull tabs
House Democrat legislation anticipated to come to the floor next week would effectively end electronic pull tabs as we know them, dramatically reducing revenue generated for local charities and other organizations.
Language in the majority’s omnibus tax bill (H.F. 1938) eliminates the “open all” feature that has been in use in electronic pull-tab games for years. This move would diminish charitable gaming funds these popular games produce, compromising a critical revenue source for local charities ranging from veteran organizations to youth sports teams, Main Street business partners and beyond.
Local charities, businesses and other civic organizations serve incredibly valuable roles in our communities and the fact the majority would cut off a major source of revenue to them is highly concerning. This provision is nothing short of reckless when you consider the consequences it would bring people throughout Minnesota. In 2022 alone, electronic pull tabs generated almost $2 billion in revenue that was then invested into communities.
Without this critical revenue stream, many of the charitable efforts Minnesotans currently benefit from would not be possible. But it’s not just the local organizations that would suffer a great deal of damage. This also would be a setback for local bars and restaurants that already face numerous challenges in this economy. These businesses that rely on electronic pull tabs to help bring in customers have had a rough few years with lost revenue of their own amid the pandemic. Now, as they are trying to rebuild during a time of high prices, supply-chain issues and a workforce shortage, the House majority is looking to add to their burden.
I continue working with House Democrats to remove this provision from the tax bill, but it's critical that legislators hear directly from charities, bars, restaurants, service clubs, and other community organizations so they understand just how serious the consequences would be if this provision is passed.
More information regarding this bill and contact information for legislators can be found at www.house.mn.gov.
Housing bill
This year’s omnibus finance bill related to housing (a committee I serve) received approval this week. It is disappointing the bill ended up being so metro-focused at the expense of Greater Minnesota. It also is concerning how so much taxpayer funding is siphoned off by special-interest groups.
Housing availability and cost increases are a major concern for many Minnesotans who have been priced out of the market by rising prices. This bill focuses on the short-term solution of housing assistance instead of helping people build a home and establish roots in Minnesota. This bill also includes a .25% sales tax increase in the seven-county metro area. This is in addition to the sales tax increase in the transportation bill (we’ll get to next).
Transportation bill
House Democrats this week approved an omnibus transportation bill which raises taxes/fees by nearly $3.5 billion the next four years despite a $17.5 billion surplus. The increases include:
- 3/4-cent metro area sales tax
- 75-cent delivery tax
- License tab fee increase
- Motor vehicle sales tax increase
The housing and transportation bills add up to a 1% sales-tax increase in the metro area. While this tax increase way down there in the Twin Cities area may not seem like a big deal to those of us who live in District 11A, we need to keep an eye on this. We could be next.
Watch for more as we continue making our way through omnibus budget bills next week. The tax bill is among the big ones remaining and I’m sure there will be some thoughts to share.
Have a good weekend and please stay in touch.
Sincerely,
Jeff