St. Paul – Today Senate Republican Tax Committee Chair Roger Chamberlain (R-Lino Lakes) presented the omnibus tax bill. The bill covers a wide range of topics, from education tax credits to property taxes, and the first income tax rate cut in nearly 20 years.
“This bill will protect every Minnesotan. It helps more parents with more education costs, it helps small businesses grow, it helps seniors keep their social security, it gives the middle class a rate cut, and we include tax conformity to make everyone’s lives easier,” said Chamberlain. “We know that we have enough money. Because we have a surplus and hear caution on the economic forecast, now is not the time to raise taxes to fund runaway spending.”
Senate File 5 includes a rate cut of .25% to the second tier income tax bracket. That moves the rate from 7.05% to 6.8% beginning in tax year 2019, and further reduces the rate to 6.67% beginning in tax year 2022. It expands the ability for businesses and farmers to deduct equipment purchases to grow and invest in their operations and reduces property taxes on businesses. The K-12 education tax credit is expanded to include pre-school expenses and will be available to more parents. The bill also allows deductions for the Opportunity for All Kids (OAK) scholarship donations. Charitable gaming organizations are allowed to put more money back into the community and the Angel credits are funded for one year. Finally, SF 5 lowers taxes for affordable housing and funds workforce housing development.
“We are funding Minnesota’s priorities: healthcare, education, transportation, without raising taxes,” said Senator Paul Gazelka (R-Nisswa), Majority Leader. “The Senate Tax bill will benefit 96% of taxpayers and half of them will actually see tax relief. Most importantly, there is no Gas Tax and no Sick Tax. There is middle ground to be found in divided government, and it doesn’t need to be done at the expense of every day Minnesotans.”