Representative Marquart Provides Insight Into House Tax Bill

St. Paul, MN — To supporters, the House omnibus tax bill looks like the largest tax cut the state has offered residents in decades. To detractors, it doesn’t cut taxes nearly enough

Yet, after four-and-a-half hours of debate Wednesday, the bill passed by a 69-62 party-line vote, and is on its way to the Senate.

Sponsored by Rep. Paul Marquart (DFL-Dilworth), HF3669, as amended, would result in $1.65 billion in tax reductions and credits in the 2022-23 biennium and $1.6 billion in the next biennium, according to the Department of Revenue.

Marquart emphasized how provisions in the bill would reduce the tax burdens of families with young children and senior citizens, whether homeowners or renters.

He notes that this bill would be of great support to seniors on fixed income through property tax relief.

Also part of the House Tax bill would be another increase in the Ag to School Tax Credit, which helps districts pass building referendums by reducing the tax impact on farm land.

Tax Relief would also come in the form of a $3,000 child care tax credit for each child under age 5, an increased student loan tax credit, and a rebate of $325 for each child age 16 and under.

The Senate tax bill, SF3692, sponsored by Sen. Carla Nelson (R-Rochester), contains only two principal provisions, as opposed to the dozens in the House bill. Passed by the Senate on April 7, SF3692 would exempt all Social Security benefits from taxation and reduce the first-tier income tax rate from 5.35% to 2.80%.

The House bill leaves the current income tax tiers as they are, but modifies taxes on Social Security benefits.

Marquart says while the Senate’s tax bill is more broad and less complex, the House bill is much more targeted to those who could use the most relief.

Among other proposed cuts, credits and new aid programs in the bill are:

• an unemployment insurance subtraction with a maximum of $10,200;

• a sales tax exemption for construction materials for local governments and nonprofits;

• grants to counties for pandemic business aid;

• grants to counties for community career workforce academies;

• an extension of the historic structure rehabilitation tax credit;

• grants to counties for pandemic rental assistance; and

• a rebate to municipal utilities that raised rates because of the 2021 polar vortex.

Listen to the full interview with Representative Paul Marquart from the KRJB Kaleidoscope Program on Friday, May 6th below.