| For Immediate Release | For more information contact: |
| March 29, 2000 | Jon Peterson (651-296-5989) |
(ST. PAUL) The Minnesota House of Representatives this week approved a comprehensive $2.9 billion tax bill that will provides another sales tax rebate, additional property tax relief and permanently reduces income tax rates, especially for middle-income families.
Rep. Rich Stanek (R-Maple Grove) said the bill would allow many working families in Maple Grove and Plymouth to keep a little more of their paychecks. The House tax bill delivers substantially more tax relief than proposed by both the Senate and Governor Ventura.
"Middle-class families are the biggest winners under our tax plan," Rep. Stanek said. "On average, they would see their state income taxes drop by between nine and ten percent. That's a few dollars a week more they can spend on groceries, making car payments, or save up for a vacation."
The House tax bill would cut individual income tax rates in all three brackets with the middle bracket receiving the largest cut (from 7.25 percent to 6.5 percent). It would also provide a $500 million sales tax rebate and continue property tax rate reductions for commercial/industrial, apartments and seasonal recreational property.
Other highlights of the bill include:
A provision to allow Hennepin County voters to decide the future funding of light rail transit. An amendment to the tax bill puts the question on the November 2000 ballot.
A state tax deduction for health insurance premiums;
Elimination of the marriage penalty for seniors with unearned, taxable income; and
An increase in the working family tax credit for low-income Minnesotans.
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