House and Senate conferees on the omnibus tax bill came to an agreement on May 1 on how much tax relief they would like the state to provide over the 2018-19 biennium. The bill, at $1.15 billion in proposed relief, is substantially different from Governor Dayton's proposal of $300 million.
State lawmakers have been debating how to spend a projected budget surplus of $1.65 billion.
Republicans have been advocating for targeted tax cuts to groups including farmers, Social Security recipients, student loan debtors and business property owners. The most tax relief is proposed for those paying individual income taxes, approximately $625 million over the biennium and $716.98 million in the 2020-21 biennium.
ICSC members have been supportive of tax proposals in the joint House/Senate tax bill that include changes to the state general levy that exclude the first $150,000 in market value for commercial properties and eliminate the automatic inflator beginning in 2018. ICSC member Rep. Roz Peterson authored the bill to freeze the inflator.
The single largest cut would be $236 million in tax savings for people who receive social security payments. The Republicans also agreed on $162 million in estate tax cuts and $126 million for the business property tax cuts. With less than three weeks left in session, negotiations now begin with Governor Dayton.