ST. PAUL – On a bipartisan vote of 90-38, the Minnesota House of Representatives has approved legislation that simplifies Minnesota’s tax code to fully benefit from federal tax reform and provides additional tax relief to middle-class Minnesotans.
State Representative Rod Hamilton (R-Mountain Lake) voted in favor of the proposal.
“More than 2 million people will receive a tax cut next year under this plan, and we’ve also conformed with the federal tax relief law which will simplify things for those who are working on their income taxes next year,” Hamilton said. “It’s a good bill and the many in rural Minnesota will benefit from it.”
Hamilton said the bill delivers the first income tax cut in nearly 20 years by reducing the second tier income tax rate from 7.05% to 6.75% by tax year 2020.
Other highlights include lowering taxes for people at all income levels by increasing the standard deduction for all filers; protecting families by preserving a state personal and dependent exemption of $4,150; encouraging affordable homeownership by allowing a state-itemized deduction of up to $30,000 in property taxes; and supporting hometown businesses and farmers by reinvesting extra revenue from corporate tax changes into Section 179 conformity and overall rate reductions.
In contrast to House Republicans’ legislation to simplify and reduce taxes, an analysis conducted by the Minnesota Department of Revenue shows that tax changes proposed in the governor's supplemental budget would raise taxes on Minnesotans of every income level, and make Minnesota's tax code more regressive.
Hamilton said the bill now heads to the Minnesota Senate for its approval.