On Sunday, the Senate passed $4 billion in tax cuts for Minnesotans. The bill is the largest set of tax cuts in state history, providing support for Minnesota’s middle-income families and individuals. It also resources to local governments to keep property taxes low for homeowners, renters, seniors, and farmers.
“Too many people are struggling too much, and now is the time for some targeted cuts and credits to give people some relief,” said Senator Putnam. “The historic tax bill will put money in the pockets of Minnesota’s families, but it will also support local communities with $300 million to cities and towns for public safety and increases in local government aid. I am also pleased to see that some of the bills I authored made it into law. We’re reducing taxes on pensions for firefighters and state troopers and cutting the tax on Social Security benefits for over 322,000 Minnesotans. And we are funding the Beginning Farmer Tax Credit that will create jobs, grow our agricultural sector, makes farming more easily accessible. This tax bill will do a lot of good.”
Key Provisions in the bill include:
- $1.13 billion in one-time tax rebates for 2.58 million Minnesota taxpayers. The $260 rebates will go to married couples earning under $150,000 per year and single filers under $78,000. Households can receive up to $1,300: $260 per adult and $260 per child, up to three kids. The rebates will be based on 2021 taxes.
- $1.52 billion over four years in tax relief through a new Child Tax Credit equal to $1,750 per-child under age 18 with no limit on the number of children covered. The full credit applies to families making up to $35,000 and phases out at higher incomes, depending on the number of children. The tax credit will reduce child poverty across the state by 30 percent.
- $1.2 billion in Social Security tax reductions; 76% of Minnesotans will pay no taxes on Social Security.
- Individuals who receive a public pension instead of Social Security will be able to subtract up to $25,000 of those benefits if they make less than $120,000/year.
- $300 million to address urgent public safety needs in communities across the state$ 160 million for local and county governments.
- $61.9 million tax cut to Minnesota charities, the first since 2012.
- Hundreds of millions of dollars in property tax relief for homeowners, renters, seniors, and farmers.
- $6 million a year for the beginning farmer tax credit.
The bill has already passed the House of Representatives, and now moves to Governor Walz for his signature into law.
###
Learn more about Sen. Putnam.
Read more news from Sen. Putnam.