Legislature, Governor pass tax cuts for more than 200,000 Minnesotans
According to a press release from Gov. Mark Dayton's office issued last month, following the introduction of the Dayton-Smith Tax Bill earlier this month, Dayton signed bipartisan legislation cutting taxes by $21 million for more than 200,000 Minnesota taxpayers in January. The bipartisan cuts signed by the Governor were included in the Dayton-Smith Administration's original tax bill proposal, which in total would provide $300 million in tax cuts for more than 450,000 Minnesotans.
"This bipartisan bill provides $21 million in tax relief to hardworking Minnesotans across our state, including college students, homeowners, teachers, and small business owners," said Dayton. "I thank the Legislature for quickly passing this relief proposed in my 2017 Tax Bill. I look forward to working with them to pass a more comprehensive tax relief plan that prioritizes the needs of hundreds of thousands of hardworking taxpayers across Minnesota."
The bill provides tax breaks to college students and their families paying for higher education, teachers buying classroom supplies out of their own pockets, homeowners who refinance their mortgages, and new homeowners paying mortgage insurance. The bill includes significant benefits for businesses, and will reduce the number of forms Minnesotans need to complete when filing on paper. It also will allow electronic filing software to be updated ahead of the filing season, so taxpayers can more easily claim the additional refund on their 2016 tax return.
"This legislation provides relief to over 200,000 hardworking taxpayers across Minnesota. It also ensures that our tax code matches federal law, which will simplify tax filing for Minnesotans this spring," said Lt. Governor Tina Smith. "I thank the Legislature for acting quickly to pass this bipartisan tax cut bill. I hope we can build on this bipartisan effort throughout the session."
Minnesotans who will benefit
The tax cuts signed by Governor Dayton will provide breaks to Minnesota filing individual income tax returns, including:
• 35,000 College Students — The bill signed by the Governor provides 35,000 college students and their families paying higher education tuition $4.3 million in tax relief.
• 70,000 Teachers — The tax cuts signed into law by Governor Dayton will make 70,000 Minnesota teachers eligible for a tax deduction for the books, crayons, and other essential classroom materials they purchase, totaling $3 million in tax savings.
• 73,000 Homeowners — The tax cuts signed into law by Governor Dayton will provide 73,000 Minnesota homeowners who pay mortgage insurance premiums for their qualified residence tax breaks totaling $11.6 million.
• Homeowners — The bill signed by the Governor provides homeowners who refinanced their homes or went through a short sale a total tax cut of $17.4 million.