Measure Includes Tax Rebates, Social Security Tax Cuts, A Child Tax Credit, Property Tax Relief, Tax Cuts for Charities, $300 Million In Public Safety Funds
ST. PAUL, Minn. – Senate Tax Chair Ann Rest (DFL-New Hope) and Vice Chair Matt Klein (DFL-Mendota Heights) said the Senate passed a tax cut bill on Sunday that includes $4 billion in tax relief over four years for millions of workers, families, charities, and seniors. It includes the Governor’s child tax credit that will cut child poverty across the state by one-third, more than $1.24 billion in Social Security tax cuts for 322,000 Seniors, as well as $300 million to bolster public safety in every Minnesota community.
The bill passed the House Saturday and will now be sent to the Governor to be signed into law.
Senators Rest and Klein said the bill represents the largest set of tax cuts in state history, with a focus on putting money in the pockets of Minnesota’s middle-income families and individuals. It also sends funds to local governments to keep property taxes down for homeowners, renters, seniors and farmers.
“The Senate tax bill prioritizes $4 billion in tax cuts for Minnesotans, putting money back in the pockets of families across the state. I’m especially pleased with how this bill help Minnesota’s children and their families, with the child tax credit cutting our child poverty rate by a third,” said Chair Rest. ” In this bill and others traveling through the Senate, we are providing local governments across the state with at least $1 billion over the next four years to provide consistent, quality local services and keep property taxes down.”
“Minnesotans have told us time and again that they want us to address rising costs and help those who are struggling,” said Vice Chair Klein. “By putting money back in the pockets of families across the state we are doing just that with this tax bill. We’re focused on helping people with everyday costs such as property taxes, and energy costs. This bill also cuts social security taxes, giving ongoing relief to many Minnesota seniors.”
- $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.
- $ 1.24 Billion reduction in Social Security taxes over four years, eliminating the tax for couples earning up to $100,000 and individuals earning up to $78,000. Under this provision, 76 percent of Minnesotans with Social Security income will not pay taxes on that income. Seniors, who receive public pensions instead of Social Security because they worked jobs such as state troopers, firefighters, public safety officers, and some teachers will be able to subtract up to $25,000 of those benefits if they make less than $120,000/year.
- The bill also includes $300 million to address urgent public safety needs in communities across the state$160 million for local and county governments .
- The tax bill delivers a $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.
- The bill also allows the state to pay off the stadium 23 years early, which provides about $220 million in interest cost savings to Minnesota taxpayers.