Senator Reinert approves bill supporting LGA reform, sales tax reduction
ST. PAUL, Minn. – Senate lawmakers approved the omnibus tax bill yesterday on a bi-partisan vote. The plan provides a stable budget solution, needed property tax relief, and reforms that modernize Minnesotan’s tax system. These reforms not only benefit middle class families, but also business owners across the state.
Senator Roger Reinert (DFL-Duluth), a member of the Senate Tax Committee, released the following statements after the bill’s passage:
Local Government Aid: “One of the main reasons I ran for the Legislature was to stabilize the state/local partnership. During the five years I served on the Duluth City Council, I saw first-hand the disconnect between our city’s need and the aid the state provided. This instability created serious problems for our budget, and left us with very few tools with which to balance our city budget. The new LGA formula—a bill I chief authored—is included in the omnibus tax bill and will bring up to $450 million in property tax relief for homeowners and businesses across the state.”
Tax Reform: “The bill modernizes many provisions in Minnesota’s tax system to reflect how our economy currently operates. I’ve advocated the need to lower our sales tax rate and broaden the base of goods it covers. This is necessary as our economy moves from one based on goods to one based on services. At 6% the sales tax rate would be the lowest rate in 22 years and move us from 17th highest nationally to 36th. In doing this, we would make Minnesota much more competitive.”
Corporate Tax Reform: “By closing corporate loopholes, we’ve lowered the corporate tax rate—the lowest since the 1960. We also provide upfront sales tax exemptions on capital equipment, enhance the credit for research and development, and increase the Angel Investment credit to support business startups.”