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| Date: | March 30, 2012 | | Contact Name: | Peter Winiecki | | Contact Phone: | 651-297-8077 | | Contact Email: | peter.winiecki@senate.mn | | For Immediate Release | |
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| MINNESOTA SENATE PASSES JOBS AND TAX RELIEF BILL Bill makes long term, sustainable changes to improve Minnesota job climate |
St. Paul – The Minnesota Senate voted to approve the Omnibus Jobs and Tax Relief bill on Friday. In light of the budget surplus revealed in the February Economic Forecast, the bill was crafted to provide over $102 million in tax relief and to encourage private sector investment and economic growth. Two-thirds of the $102 million relief is for individual income taxpayers and the total tax relief over the next three years comes to nearly $300 million.
“Since we have reversed the state budget trend from a cycle of perpetual deficits to a budget surplus, the time is right to offer tax relief for individuals, businesses and job creators,” said Deputy Majority Leader Julianne Ortman (R-Chanhassen), chief author of the bill. “This bill is designed to promote economic growth by making more capital available for investment, equipment, expansion and additional employees.”
A key component of the bill is a reduction and phase-out of the statewide business property tax totaling $29 million in Fiscal Year 2013. Businesses will continue to pay their local property taxes. Beginning in 2017, adjusted levy base amounts for commercial-industrial property and seasonal recreational property are reduced by approximately 10 percent until the tax is eliminated in 2026. Reducing and eventually eliminating the statewide business property tax has been an economic stimulus priority for Senate Republicans for several years.
Additional provisions include $62 million in federal tax conformity to address the marriage penalty and allowing a subtraction of 46 percent of military retirement benefits. The bill also makes an increase of the angel investment tax credit cap by $2 million per year and implements a phased-in, upfront exemption for capital equipment purchases.
“This is a true jobs bill that we believe will help grow the private sector economy. It is also forward-thinking legislation---this jobs and tax relief bill makes long term, sustainable changes to the state’s tax code rather than offering short term, quick fixes,” said Sen. Ortman. “By passing this bill, the Minnesota Senate is sending a strong signal to entrepreneurs, investors and job creators that Minnesota is open for business.
Differences in a bill moving through the Minnesota House of Representatives will mean a conference committee will be appointed to reach compromise bill language.
