State Representative
Marty Seifert

SAINT PAUL The House of Representatives passed the largest tax rebate package in state history Thursday night, clearing the way for over $1.1 billion to be returned to Minnesota families.

"We have kept faith with our words that we would return the state's surplus to its rightful owners," said Rep. Marty Seifert, R-Marshall. "This rebate package will return over $1.1 billion in over-collected tax money that belongs to the taxpayers of this state.

"This rebate package is the fairest package proposed, it is the largest package on the table and it is the only package that delivers the rebate now, instead of months down the road."

The income tax rebate is based on income taxes paid for 1997. "That means the rebate can go out the door immediately," Seifert said. "By using the taxes paid in 1997, all the information necessary for the rebate is already in the hands of the State Department of Revenue and they can almost immediately begin processing the rebates."

Under the tax rebate, over 1.9 million Minnesotans will receive a check. The package rebates 100 percent of the first $150 of income tax paid for tax year 1997, and 20 percent of any income tax liability over $150. The rebate is capped at $7600 for married taxpayers filing joint returns and $3800 for all other taxpayers.

"Over 60 percent of the surplus was created by an over-collection of income taxes and so it is only fair that the money be returned based on who created the surplus," Seifert said.

Nearly two-thirds of those receiving an income tax rebate under the House plan will not be subject to federal income taxes on the rebate. Only filers who itemize their deductions will be subject to federal income taxes.

Seifert also points out that the package is the only rebate proposal that is fully funded. "The governor's plan is missing $400 million that he wanted to take from bonding projects that the Legislature is paying cash for," Seifert said. "A measure to convert that cash to bonding and make the money available again for a refund was defeated by the DFL."

The rebate package also includes $75 million in assistance for Minnesota farm families. Under the farm relief plan, nearly every farmer in the state will receive some cash assistance.

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Most farmers will receive a direct cash payment tied to the number of acres they currently farm. That cash payment is $4 per acre, based on a farmer's Farm Services Agency (FSA) Certified acres, with a maximum payment of $10,000.

"The per-acre payment, based on FSA certified acres, puts the money directly into the hands of the farmer operating the land, including farmers who rent the land" Seifert said. "During the agriculture crisis, farmers still have to pay their rents and landlords are still receiving their rents. We want to make sure the assistance goes to the actual person farming the land who is taking the risks.

"This relief package does not single out a certain type of farmer for assistance," Seifert continued. "The relief goes to all farmers because we all know that at one time or another during the past few years, every segment of Minnesota's agriculture economy has suffered."

The bill also provides an alternative provision for livestock producers who operate on smaller farms. Livestock producers who operate a facility on 160 acres or less and who have sales of $10,000 or more would receive a rebate of half of their 1999 property taxes.

"This farm relief package is unprecedented in state history," Seifert said. "Putting $75 million directly into the hands of farmers get the relief to where it's needed most."

Seifert continued, "I am hopeful we can now work with the Senate and the governor to come up with a winning plan for Minnesota taxpayers."

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