Tax bill is on its way to the governor

A $432 million tax bill that would conform the state’s tax code to several federal provisions and repeal three business-to-business taxes was re-passed overwhelmingly off the House floor 126-2 on Friday. Earlier in the day the Senate passed the bill 58-5. It now moves to Gov. Mark Dayton for action. He said during a press briefing today that he would sign the measure as soon as it reaches his desk.

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Governor’s tax bill sits at $115 million more than House proposal

There is a little more than $115 million difference between the tax relief put forward by the House and that in the governor’s proposal. However, by the end of the week, that gap could be closed.Tuesday, the House Taxes Committee heard HF3122, the governor’s tax bill, sponsored by Rep. Ann Lenczewski (DFL-Bloomington). Providing $616.56 million in tax relief over the 2014-2015 biennium, Lenczewski said an omnibus tax bill expected to be heard by the committee on Thursday will most likely include provisions put forward by the governor and not already covered in HF1777, which passed overwhelmingly off the House floor March 6.That $501 million proposal awaits action in the Senate where Sen. Rod Skoe (DFL-Clearbrook) is its sponsor.Revenue Commissioner Myron Frans said the governor’s bill would provide:$256.57 million to pay for repeal of business taxes, expand the local government sales tax exemption and increase the fundraising exemption for youth and senior citizen groups;$227.59 million to conform the state to the federal tax code;$88.6 million to expand the child and dependent care credit and extend and increase the angel investment credit; and$42.7 million to repeal the gift tax and increase the estate tax exemption.While both the House and governor address the three business-to-business taxes enacted last session, the governor’s bill would make the repeal effective March 31. The House, on the other hand, makes retroactive two tax provisions that were effective July 1, 2013, kicking in a refund mechanism. (One tax, on warehouse services, will not take effect until April 1.)Rep. Kurt Zellers (R- Maple Grove) questioned the governor’s unwillingness to provide refunds, if the taxes are repealed.Frans said that it would be difficult for the department to set up a proper refund mechanism. Continue Reading

Emerging privacy concerns brings call for new commission

During her 16 years as a House member, Rep. Mary Liz Holberg (R-Lakeville) has committed herself to data practices. She announced recently that she will not be seeking re-election, so in what could seemingly be one of her last bills as a state representative, she seeks to create a legislative commission that would develop more expertise on data practices within members of the House and Senate.

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Property tax relief, new fourth tier rate highlight conferred tax bill

UPDATE: The Senate passed the omnibus tax bill 36-30 Monday, a few minutes before midnight. The bill now goes to the governor for consideration.There were a few surprise provisions when the omnibus tax bill returned for House final approval early Monday. The funding goals remained constant since the start of session — but the revenue raisers had been tweaked; some projects that were in the defeated bonding bill found their way into the tax bill, as did a possible solution to the anticipated state funding shortfall for the stadium to house the Minnesota Vikings.A negotiated agreement would produce $2 billion in new revenue over the next biennium. This would come largely through a new tax on the state’s highest earners and other taxes, including an increase on cigarettes and closing of corporate loopholes. The money would go toward DFL priorities of solving the state’s $627 million deficit; paying back some of the money owed to the schools and providing $400 million in property tax relief.The House passed the bill 69-65. Continue Reading