Saint Paul, MN. – Last night, the Minnesota House of Representatives passed HF 1938, the 2023 House Tax Bill. Collectively, the bill delivers the largest tax cut in state history with credits, rebates, and other provisions designed to maximize benefits for workers, families, and seniors. It also addresses years of rising property taxes and underinvestment in local communities. These critically needed provisions are paid for through the state’s historic surplus and new revenue from multinational corporations and the very wealthiest in the state.
“This is a fantastic bill which prioritizes low income workers, families, and our most vulnerable seniors. It’s a bill that recognizes there are many Minnesotans who have struggled greatly the last few years and it tries to rectify that,” said Rep. Josiah Hill (DFL - Stillwater). “I’ve seen first hand how many students have continued to lag behind since the pandemic, which is why I’m proud that the bill updates the income limit for the K-12 Education Tax Credit for the first time in 26 years. It also includes great property tax rebates to help our community members stay in their homes. Overall this is a great bill that I know will benefit my district and constituents.”
As state and federal governments have been unable to fully fund various services, local governments have been forced to make up the difference in property taxes. Property taxes are regressive and have disproportionate impacts on Minnesotans with low or fixed incomes. The House DFL’s Tax bill delivers $648 million of property tax cuts and direct assistance to local communities, including measures to reform the Renter’s Property Tax Refund program, incorporating the credit onto income tax filings, resulting in an additional $378 million back to renters over the next two years. The bill also includes expansion of the Homestead Credit Refund, targeting an additional $41 million of assistance over the biennium to homeowners who will benefit the most. It also contains an additional $100 million for Local Government Aid and $100 million for County Program Aid to help local communities deliver critical public services while keeping property taxes in check.
Minnesota has experienced a stellar economic recovery since the COVID-19 pandemic, but this has not been felt equally. Workers, families and seniors have experienced tighter budgets as wages have failed to match rising costs. That’s why the House DFL Tax bill prioritizes these Minnesotans. The bill includes full Social Security state income exemption for those earning less than $100,000 annually (married/joint) or $78,000 (single/head of household). It also includes direct rebates of $275 per person, with an additional $275 for each dependent (up to three) reaching more than 2,562,300 Minnesotans to help them meet day-to-day expenses. In a strong show of support for families, the bill provides for a new and simplified Child & Working Family Tax Credit of up to $1,175 per child which will impact more than one million families and reduce child poverty by 22.9%.
Video of the floor debate will be uploaded to the House Information Youtube page.