Dear Neighbor,
The House has made its way through votes on all of this year’s preliminary omnibus finance bills over the last week or so, with each receiving approval mainly on party lines. I recapped some of those bills last week and here is a look at some more notable proposals:
The transportation bill (H.F. 1555) increases the gas tax by 20 cents per gallon, a 70-percent increase. It also increases the vehicle registration tax, the metro sales tax and the new-vehicle sales tax for a total tax increase of more than $4 billion over four years.
While we need to improve our roads and bridges, I disagree with adding 70 percent more to the gas tax because it hurts middle-class and lower earners and people of Greater Minnesota the most. It is very concerning to think about how this would negatively impact the ag. industry – dairy in particular – at a time farmers already are operating on such tight margins. With a $1 billion state surplus, there are other ways of providing more transportation dollars without raising taxes on people who can least afford it.
The bill also transfers statutorily dedicated auto parts sales tax funds – $417 million in 2020-21 – into the general fund, creating a self-inflicted funding gap that would take around half of the 20-cent gas tax increase to fill.
Finding agreement on a transportation plan this session could be the most challenging of all budget areas with all these factors and others to consider.
The omnibus tax bill (HF 2125) is another part of the majority’s plan to raise taxes on Minnesotans by over $12 billion during the next four years. The tax bill itself includes $3 billion in new increases over the next four years. A number of these tax increases also disproportionately impact middle- and lower-income Minnesotans and burden businesses, translating to higher costs of goods and services and stifled wage growth for Minnesota.
The public safety omnibus bill (HF2792) reduces sentencing and penalties for criminals, and includes two controversial gun control bills. The bill passed on a 70-64 vote with five Democrats voting against the bill – the most of any DFL budget bill thus far.
Concerns are being expressed over several provisions that would soften sentencing and penalties in Minnesota. For example, the bill would allow more felons to avoid incarceration by implementing presumptive probation rather than prison time for felony offenses.
Provisions regarding firearms also have been the subject of heavy debate at the Capitol. One House measure expands background checks to include private transfers of firearms. Even transfers between friends would require individuals to pay a fee. It also only allows one firearm per permit to purchase, which expires after 30 days, and imposes a requirement for private parties to keep records in perpetuity.
Another point of debate on this bill is in regard to a so-called “red-flag” law which permits the removal of a person’s firearms if a court grants an order for an extreme risk protection order. This could be done through an ex-parte process where the accused is not present to offer a counter to the accusation, raising due process concerns among lawmakers. Under the proposal, law enforcement would be responsible for delivering the order and executing the firearm seizure, even without the accused knowing an accusation has been made against them.
Look for more news as conference committees begin working to reconcile differences between House and Senate proposals so we can bring the bills back for final approval and adjourn on time and with a budget in place May 20.
Sincerely,
Paul