KIMT News 3 – Minnesota Gov. Mark Dayton signed a $616 million tax cut plan for the state on Friday, and this is one measure that can truly be described as “bi-partisan.”
Lawmakers tell us that the bill was in the works for a short while as everyone knew this was something the state desperately needed.
Minnesota State Rep. Kim Norton, (D) Rochester, says she’s thrilled to have this bill passed and signed by the governor and having it pass quickly as some of the cuts apply to tax returns being filed right now.
“The Senate took the bill on the House floor this last week,” she said, “it was sent over to the house, we concurred with their bill very quickly, there was a little bit of discussion but there were no amendments on the house side. We were able to vote it into law and send it to the governor for his signature very quickly.”
It might have been a speedy process, but it was thorough.
The bill is said to affect nearly one million Minnesota taxpayers and will include a repeal of a sales tax on farm equipment repairs, cuts to a warehouse tax set to go into effect in a week, as well as cuts on taxes for student loans, teachers, child care, and home foreclosures.
However, these cuts aren’t just coming out of thin air; It’s all possible thanks to a $1.2 billion state budget surplus that Gov. Dayton announced not too long ago.
While all of the tax cuts put on the table were unique in their own way, Sen. Carla Nelson, (R) Rochester, had one specific cut in mind for her district.
“Businesses, small businesses, large businesses, even one of the largest employers in Rochester, IBM, were hit hard with last year’s tax bill.”
So what will this mean for this year?
Lawmakers say that some of these changes will be seen on 2013 tax returns, but most of the changes will take place in 2014.
This won’t be another thing to add to your list of things to keep track of this tax season though, Nelson says that the IRS and the Department of Revenue for the state will do all of the housekeeping work on taxes that have already been filed.