Comprehensive tax bill contains four provisions authored and championed by Sen. Anderson
On a broad, bipartisan vote, Senator Paul Anderson (R-Plymouth) joined his Minnesota State Senate colleagues in passing the comprehensive tax budget bill. The legislation expands tax relief to seniors, parents, small business owners, veterans, encourages affordable housing investment, and reduces property tax burdens. Importantly, it will not increase revenue during a state budget surplus and delivers a reduction in tax burdens to roughly half of all Minnesota taxpaying families. Also included within the bill are four separate provisions authored and championed by Senator Anderson.
“By working across the aisle, we were able to pass a comprehensive tax budget bill that lowers taxes, aims to increase wages, and continues to grow our economy,” said Senator Anderson, who serves on the Senate Tax Committee. “Further, we help parents manage education costs, deliver a tax cut to middle-income taxpayers, and conform our state tax code to federal regulations to make filing easier for all Minnesotans. By increasing the income of hardworking families across our state, we will grow our economy.”
The legislation includes a tax cut of .25% to the second-tier income tax bracket, directly targeting middle-class families. If signed into law, this would be the first income tax rate cut for working Minnesotans in almost two decades. Further, it expands the ability for businesses to deduct equipment purchases – which expand and invest in their operations – and reduces the statewide property tax levy by $50 million per year beginning in 2020. Other provisions include additional funding available for affordable, workforce housing development while lowering taxes on affordable housing. Additionally, the legislation cuts taxes on social security, thereby increasing the income of Minnesota seniors. Moreover, the veterans homestead exclusion is extended – benefiting more veterans and their spouses.
Also included within the bill is a bipartisan measure championed by Senator Anderson to reinstate the Angel Investor tax credit. The Angel Tax Credit Program provides a tax credit to individuals who invest in “startups”, or new companies, which focus on developing new technology or products. Since the start of the program over $400 million of private investment in Minnesota companies has been tied to the credit.
“Minnesota is known for its tremendous innovation and technology companies,” added Senator Anderson. “This credit is critical for start-ups in the science and tech industries, including emerging companies involved in medical devices, biotech, software, the Internet, and other sectors. Reinstating this program will encourage investment in our state, grow our economy, and ultimately lead to more high-paying jobs for Minnesotans.”
Additionally, the legislation features a provision authored by Senator Anderson to expand the K-12 education tax credit to include pre-school expenses. Further, eligibility for the K-12 education tax credit is expanded, helping more parents and families manage essential school expenses.
Senator Anderson, who also serves as chair of the Senate Higher Education Committee, authored legislation within the bill to benefit Minnesota higher education institutions and their students by ending the overreach of the Department of Revenue in misapplying tax law to scholarship donations made by collegiate sports season ticket holders. Currently, Minnesota is the only state in the B1G TEN who applies taxes to these student scholarship donations.
Lastly, the bill includes a sales and use tax exemption for the City of Minnetonka in order to construct a new fire station and remodel the existing police and fire facilities. Authored by Senator Anderson, this was also included in the 2018 tax bill – unfortunately vetoed by Governor Dayton last spring.
“The ultimate goal of this tax bill is to protect hardworking Minnesota families, grow the economy and promote prosperity,” concluded Anderson. “This bill accomplishes this goal while investing directly in our community, benefiting virtually everyone in the state of Minnesota.”