ST. PAUL — House Republicans said they want to exempt more Social Security income from the taxes of Minnesota residents, create a credit for student loan payments and reduce property taxes for farmers as part of a $1.35 billion tax relief bill released Wednesday.

The large tax bill shows Republicans eagerness to provide tax relief after several years without a tax bill. The request is the high-end of what Republicans think they may be able to get in negotiations with Gov. Mark Dayton over how to divvy up the state’s $1.65 billion surplus.

“In the last two years, it’s Minnesotans who haven’t been able to appreciate and be part of the prosperity that they have created for our state budget,” said Republican Speaker of the House Kurt Daudt. “We think they’ve been left out and think it is time that they feel some of the benefit of the work that they have done to create the surplus that we have.”

The $270 million tax reduction on social security benefits is the highlight of the tax bill. But there are a number of other pieces such as a new tax credit for student loan payments that could give more than 70,000 college graduates an extra $640 on average. Republicans also want an exemption for the first $200,000 on businesses’ property value. Farmers could see thousands of dollars in property tax relief under the bill as their per-acre taxes could be halved. They also want to remove an increase in the cigarette tax.

— which Republicans call “the most regressive tax in the state.”

Republican Rep. Greg Davids, of Preston, said the House focused on targeted tax relief because there was some concern that the Senate’s broader tax bill would provide more benefits to people in the highest tax bracket. Davids, the chair of the House tax committee, said he didn’t want to go after Dayton’s past tax increase on the wealthiest in the state because he wants a tax bill the governor would be willing to sign.

Dayton vetoed last year’s tax bill because of a single wording error related to taxing bingo halls that would have cost the state $100 million over three years.

The governor’s target for a tax bill is much smaller than Republicans and both sides are expected to make multiple changes to their plans as negotiations continue throughout the session.