Tax rebate ‘on the way’
Published 12:00 am Tuesday, August 10, 1999
Steve Sviggum toured southern Minnesota yesterday letting people know tax rebate money is on the way.
Tuesday, August 10, 1999
Steve Sviggum toured southern Minnesota yesterday letting people know tax rebate money is on the way. The Minnesota speaker of the House said the first rebate checks will be mailed Aug. 23 and taxpayers should see them in their mailboxes within the same week.
&uot;We delivered the cash back to the families and taxpayers of Minnesota because we know they can spend their hard-earned money better than the government,&uot; Sviggum, R-Kenyon, said.
The speaker said he’s asking taxpayers what they plan on doing with their money.
&uot;It’s your money – underline the word your,&uot; he said on his pass through Albert Lea.
As an example Rep. Dan Dorman, R-Albert Lea, presented Craig and Kathy Miller as &uot;the typical family in Albert Lea.&uot;
When Sviggum asked how they planned to use their rebate money, Craig said he was already making plans.
&uot;I have some ideas, mostly house related,&uot; he said.
Sviggum, himself, said he already has the money earmarked for back-to-school expenses, including helping with college tuition for a son and clothing.
While he recognized that all families are different, Sviggum said, &uot;The average family in Albert Lea – mom and dad both working, two children, mom and dad making $40,000 – is going to get a check back of $906.&uot;
He add that the figure will change based on income.
Dorman said he’s excited to see the money coming to the area. He said figures show the total rebate will equal 2 percent of sales in the state. As a result, he said the added money could help strengthen the already good economy.
While state residents may be using their money for different reasons, Sviggum said there is one place where he doesn’t expect many of the rebate checks to end up. That’s the proposed fund for a new stadium.
&uot;I don’t know that the fund is being set up,&uot; Sviggum said, noting it is a governor’s project and separate from legislative action.
He said he expects some sort of fund to be created, since the governor announced it, but said he doesn’t think it will be used.
&uot;My guess is there will not be a lot of zeros,&uot; he said.
But, aside from spending on various wants and needs, Sviggum acknowledged that some taxpayers have shown interest in giving their rebate check to the community.
If that is done, he said new legislation will allow taxpayers to claim the donations as charitable giving on their 1999 income taxes.
&uot;Once you’ve given more than $500 … you can deduct for it,&uot; he said. The change will benefit both those who itemize on their tax returns and those who don’t.
While he said the rebate is good news for taxpayers, Sviggum said the better news is that they are paying less taxes to the state.
As of July 1, the state reduced its income tax rate.
&uot;We think that’s more important than the rebate,&uot; Sviggum said.
And, he said it hasn’t stopped.
&uot;We’re going to follow through,&uot; the speaker said, noting House Republicans have plans for another tax cut next year.