Dear Neighbor,
Congratulations to the Albany Huskies for making history with the school’s first state boys basketball state championship after defeating Minnehaha Academy last weekend! Click here for the thrilling last few seconds of the title game as they unfolded on the KNSI broadcast.
In other news:
Meeting with retailers
It was my pleasure to address a group of retailers from around the state at the Capitol this week. I expressed to them my support for tax reform to make Minnesota a better home for businesses, along with advocating for improved public safety and cracking down on organized retail theft rings that are posing increased challenges. Thanks to everyone who showed up to this event!
Here is more from the House this week:
Transportation tax increases
I mentioned in last week’s newsletter that the House and Senate majorities and Gov. Tim Walz have agreed to a plan to both spend the state’s $17.5 billion surplus and increase state spending by 40 percent. I also noted they did not commit to fully eliminating the state tax on Social Security and, in fact, propose numerous tax increases. For example, the House Democrat transportation bill raises taxes and fees by at least $4 billion – $1.71 billion in 2024-25, and by more than $2.2 billion in 2026-27. Here is a sampling of what they propose:
- LICENSE TAB FEE INCREASES: Democrats look to raise $861 million ($351 million in 24/25, $510 million in 26/27) in fees on Minnesota drivers who want to renew their license tabs.
- $10 SURCHARGE ON LICENSE TABS: In addition to the license tab fee increase, they are also proposing a $10 surcharge on all renewals. That totals another $88 million ($43 million in 24/25, $45 million in 26/27) leveled on Minnesota’s drivers.
- MOTOR VEHICLE SALES TAX INCREASE: Under this provision, the Motor Vehicle Sales Tax (MVST) would increase from 6.5% to 6.875%, costing motorists more than $227 million ($105 million in 24/25, $121 million in 26/27).
- 75-CENT “DELIVERY TAX”: Nearly $721 million ($297 million in 24/25, $424 million in 26/27) is expected to be leveled on residents who shop from home thanks to this tax on goods and prepared food deliveries. Think everything from Amazon packages to the pizza delivery driver.
- ¾-CENT METRO AREA SALES TAX INCREASE FOR TRANSIT: Residents in the 7-county Metro Area are estimated to pay more than $2 billion ($917 million in 24/25, $1.165 billion in 26/27) through this ¾ cent sales tax. Language specifically states the Met Council must use this funding for more than 10 transit-related items.
This is just one of many omnibus finance bills the House majority is assembling. Watch for more on others as the session progresses.
Nursing home funding
Nursing homes are closing around the state because they can’t afford to stay open. It is the Legislature’s job to set the rates that nursing homes receive to hire and pay staff, care for residents, and cover their bills. They need our help today if we want them around to care for our seniors tomorrow.
House Republicans have called attention to the shocking lack of funding for nursing homes in the House majority’s budget proposal, despite the ongoing long-term care crisis. This week we conducted a press conference to discuss this issue and also made a motion to declare urgency on the floor so we could take a vote on approving nursing home funding. Unfortunately, the House majority blocked that action on the floor.
Together with Republican legislators, nursing home providers are calling on the Legislature to take action and ensure our nursing homes have the investments they need to keep caring for our seniors. I will keep working on this subject so stay tuned for any developments that may occur.
Until next time, have a good weekend and my door always is open.
Sincerely,
Lisa