The Minnesota Senate passed a pro-growth tax bill that will provide over $900 million in tax relief, especially focused on low- and middle-income Minnesotans across the state. Altogether, four out of five Minnesota taxpayers, including 350,000 seniors and 2.3 million households, will see relief.
“The middle class is being squeezed and this bill will put dollars back into the pockets of hardworking Minnesota families, seniors, students, farmers, and small businesses,” said Sen. Carla Nelson (R-Rochester). “It has been nearly two decades since Minnesotans have seen a meaningful tax relief package and it is long overdue.”
Among the tax relief provisions in the bill:
- Low- and middle-income Minnesotans will see a permanent tax cut to lowest income tax bracket.
- Seniors will see a phase-out of the tax on Social Security benefits, making Minnesota a more welcoming place for retirees.
- Students will see relief through a tax credit for college graduates paying off loans.
- Small businesses will benefit from an exemption from the statewide business property tax, as well as other incentives to help Main Street businesses thrive.
- Farmers will be eligible for a property tax credit on agricultural land and a change to the estate tax, making it easier for the next generation of farm families.
The bill passed the Senate with bipartisan support. It awaits action by a joint House and Senate conference committee, which is expected to take place near the end of April.
“Comprehensive tax reform that lowers rates will help Minnesota families, seniors and students thrive,” Sen. Nelson continued. “It makes Minnesota more competitive for business startups, relocations, and the jobs that come with them.”
Sen. Nelson is in her third term representing Senate District 26, which includes communities in Olmsted County. She serves as chairwoman of the Senate E12 Finance Committee.