Senate Report by Dan Sparks

Something left unfinished in the 2015 legislative session was the passage of a tax bill. While both the House and the Senate were able to pass respective bills, we were unable to come together and find a compromise between our positions. However, the conference committee has remained open so we could work on it and finish that work this year.

The bill we passed in 2015 was a balanced approach of providing targeted tax relief and tax credits that would help those who need it most, with a focus on property tax relief, tax credits for veterans and support for families through the K-12 education credit and a credit for saving for college. Together, these credits and others provided $268 million in relief while leaving the state on firm financial ground.

Unlike last year, I was on the Taxes Committee beginning this session. As a new member of the committee, I have appreciated the time spent reviewing new proposals for consideration in those ongoing negotiations. Due to the current budget surplus, we were able to craft another tax proposal — offering additional tax credits and relief.

This year’s supplemental tax bill continues to focus on help for working families and students. One provision in the bill expands eligibility for the state’s Working Family Credit, a proven tool to improve the financial health of working, lower income Minnesotans. Nearly 340,000 households received the Working Family Credit in 2013 — 48 percent of which were in Greater Minnesota. We are expanding the credit which will make an additional 109,500 eligible. We also provide for a student loan credit of up to $1,000 for eligible individuals working to get out from under this debt.

We also addressed a less exciting, but very impactful issue of federal tax conformity. Sometimes, our state’s tax policy is different than the federal policy which can add confusion and hassle for people as they file their taxes. In our bill this year, we make sure to conform to federal changes including the Slain Officer Family Support Act, Don’t Tax Our Fallen Public Safety Heroes Act, Bipartisan Budget Act and Protecting Americans from Tax Hikes Act.

The supplemental omnibus tax bill is a responsible approach to maintaining a balanced budget while providing $120.2 million in relief for Minnesota taxpayers in 2017 and $214.2 million in the next biennium. This bill will now be considered in a conference committee along with provisions passed by the Senate in the 2015 omnibus tax bill (H.F. 848).

If you have questions or concerns about legislation and the session, I encourage you to contact my office at 651-296-9248 or at sen.dan.sparks@senate.mn.

 

Dan Sparks, DFL-Austin, is the District 27 senator.