State Lawmakers Pass Supplemental Budget and Additional Tax Cuts

Today, my colleagues and I unanimously passed ‘Tax Bill 2,’ a $103 million package of additional tax cuts for Minnesota homeowners, renters and businesses.

Today’s vote follows $443 million in tax cuts signed into law on March 21 that benefit over one million Minnesotans.

Providing middle class Minnesotans and small businesses with additional tax cuts will keep our economy on the right track. It means individuals and families will have more money to buy goods from local businesses, save for retirement or send their kids to college.

Tax Bill 2 includes $45 million in targeted property tax relief on top of the $133 million in property tax relief the Legislature passed in 2013. Minnesotans who stand to benefit include:

Homeowners
A one-time increase for all Homestead Credit Refunds paid in 2014 means that each and every homeowner receiving a refund will see a three percent increase, providing an additional $12.1 million in property tax relief to 500,000 Minnesota homeowners.

Renters
A one-time increase for all Renters’ Credit Refunds paid in 2014 means that each and every renter receiving a refund will see a 6 percent increase, providing an additional $12.5 million in property tax relief to 350,000 Minnesota renters.

In addition to property tax relief for homeowners and renters, Tax Bill 2 provides a property tax cut for small businesses with property value less than $1.1 million by excluding all commercial and industrial property value less than $150,000 from the statewide general property tax. The bill also includes sales tax reforms that provide additional sales tax relief to small businesses.

Lastly, the bill provides tax relief to our active military members by extending our active military income tax subtraction to National Guard service members in the Active Guard Reserve.

The vote on Tax Bill 2 comes one day after we passed a supplemental budget package that will keep our economy growing right now and into the future by making investments in bread-and-butter economic priorities such as:

More funding for every school
A provision I authored that provides $54 million to boost the funding formula by one percent (an increase of $58 per student).

Hot lunches for low-income students
$3.5 million to expand the school lunch program so no student is ever denied a meal due to the inability to pay.

Investments in early childhood education
Over $4 million for early childhood literacy programs, school readiness aid and developmental screening aid.

Wage increases
$80.36 million for a 5% wage increase for home-and-community-based health care workers who provide care for the elderly and people with disabilities.

Critical transportation funding
Additional investments in highways, roads and bridges as well as funding for local governments to fill potholes.

Healthy meals for seniors
$425,000 for nutritionally balanced meals for seniors at community congregate dining facilities.

Our supplemental budget will have a positive impact on many lives. We included a broad array of priorities that benefit people of all ages and backgrounds, from our youngest learners to our senior citizens. And we were able to do so while maintaining a structurally balanced budget.

Please contact me with any questions or feedback about the House supplemental budget and Tax Bill 2. You can reach me by phone at (651) 296-5387, by email at rep.will.morgan@house.mn, or by postal mail at 401 State Office Building, 100 Rev. Dr. Martin Luther King Jr. Blvd., St. Paul, MN 55155.