ST. PAUL – House Republicans have unveiled a “North Star Comeback” package of bills that, together, would provide nearly $4 billion in tax relief – a state record.
Key features of the plan include $1 billion in one-time property tax relief, eliminating taxes on tips and overtime, and reducing car tab fees. It also lowers childcare costs and provides hundreds of millions of dollars for education at no cost to taxpayers through scholarship-granting organizations.
State Rep. Paul Anderson, R-Starbuck, said the package is built around three main components: protecting family budgets, making government work for Minnesotans, and building a world-class economy where businesses can survive and thrive. These proposals, Anderson said, reflect what legislators are hearing across the state as families, businesses, and local governments feel the pinch in today’s economy.
“No matter how hard they work, many people are having a hard time keeping up with higher prices,” Anderson said. “This tax relief would provide them with some breathing room at an especially opportune time.”
Anderson said many of the proposals in the North Star Comeback are common-sense policies that Minnesotans broadly support. For example, several measures aimed at improving government are included, such as modernizing county-administered public service IT systems and dedicating additional funding for fraud prevention. The proposal also expands safe schools funding so that, Anderson said, every student can learn in a secure environment.
House Republicans have made recent efforts to advance bills on tax relief, only to have House Democrats block them. This includes legislation (H.F. 3127) that would provide a combined $2.05 billion in tax relief for 66,000 Minnesota businesses – at no cost to the state – by conforming to the federal tax code.
In addition, Democrats in a Taxes Committee meeting blocked the House Republican proposal to provide $1 billion in property tax relief to Minnesotans at a time many homeowners are suffering significant increases. Anderson said this bill would help offset spikes caused, in part, by unfunded mandates imposed on local governments during the last biennium.
Anderson said it makes sense to use the current, short-term $3.7 billion surplus to provide a one-time rebate to Minnesotans – especially seniors on fixed incomes – who are being taxed out of homes they have already paid for and lived in for decades.
“Right now, we have a short-term surplus, so giving people a break on their taxes would be a good use of these dollars,” Anderson said. “It would help make Minnesota more competitive, boost our economy and make our state a better place to live, work and raise a family. There is still time to improve Minnesota’s tax climate this session, but the House is tied so we need bipartisan support to make it happen.”
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