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State Representative
Andrew Westerberg

523 State Office Building, 100 Constitution Ave., St. Paul, MN 55155 (651) 296- 4226

For Immediate ReleaseFor more information contact:
March 28, 2000Brian Healy (651-296-9719)
NEWS RELEASE
WESTERBERG SEEKS SIGNIFICANT TAX CUTS
House passes $3 billion tax package targeted to middle class

ST. PAUL Every Minnesotan will enjoy significant income tax cuts, property tax rate reductions, and another sales tax rebate under the House Tax Omnibus bill which passed the House with overwhelming support 85-47 on Monday. The bill would slash taxes by more than $3 billion over the next three years.

"Sixteen consecutive budget surpluses prove that Minnesotans are overtaxed," commented Westerberg. "We made significant progress last year, but we need to continue to cut taxes so the money stays in the paychecks of the people. I have more faith in the taxpayers ability to spend their money on the things they need over the government deciding."

The cornerstone of the proposal is the second across-the-board permanent income tax cut in as many years. Middle income taxpayers would receive the largest cut, reducing their income tax rate from 7.25 to 6.5 percent. The lowest and highest brackets would also be reduced from 5.5 and 8 percent to 5 and 7.5 percent, respectively. Individuals who had income tax liability or who filed a claim for the 1998 property tax rebate would also automatically receive another sales tax rebate later this summer.

"I was particularly pleased with several local government provisions in the bill," Westerberg continued. "I have been approached for years to do something about the sales tax counties are required to pay on county road projects. While this will save our counties thousands of dollars, the savings will ultimately be passed on to the county residents through lower property taxes."

Tax rates on charitable gambling will also be reduced by 8 percent under the proposal.

According to Westerberg this is an important issue that will keep additional money in local organizations and communities.

Phase III of property tax reform will also be implemented under the proposal. This includes reducing commercial/industrial property tax rates .4 percent from 3.4 to 3 or 2.4 to 2 percent.

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Property tax rates for apartments will be reduced from 2.4 to 2 percent and second tier homes would be reduced from 1.65 to 1.5 percent.

"Cutting property taxes on homesteads, apartments and especially commercial/industrial property is a huge economic development tool," Westerberg continued. "We need to make Minnesota attractive to new businesses by remaining competitive with surrounding states. Property taxes are one direct way we can influence the business environment here in Minnesota and create more affordable property tax rates for the employees of those businesses."

"This is a well balanced plan that continues our historic permanent tax cuts of last year," Westerberg concluded. "The longer we peck away at our outrageous tax burdens in this state, the better it is for hardworking people across the state."

Other tax provisions in the House Omnibus Tax bill include a(n):

New tax deduction for health care premiums Increase to the working family tax credit New farm education tax credit Huge $500 million sales tax rebate Eliminates the marriage tax penalty for seniors

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