Legislative Update - March 21, 2014

Today is the first committee deadline, meaning that for bill to continue forward they needed to move through the committee process in their chamber of origin. I’m happy to report that all of my bills — preventing e-cigarettes from getting into the hands of minors, public integrity, Homeless Youth Act, and sexual assault victim notification of rights, among others — have all met the deadline.

While legislation gets most of the media coverage of action at the Capitol, the residents of Eagan are actively involved in my work. It’s always great to meet with constituents on legislative issues in St. Paul, and as your voice at the Capitol, I welcome and encourage you to visit and share your thoughts on issues.

I also had the opportunity to attend Mayor Maguire’s State of the City Address this week. Our great city is doing well, with strong partnerships, strong job growth, and new development. It was great to hear from city leaders about the progress the city is making. We’re on the right track and will continue moving our city and state forward.

Tax Cuts on the Way to Governor’s Desk

Today, legislation that cuts taxes for middle-class Minnesotans and repeals three businesses-to-business taxes, including the warehouse tax is on its way to Governor Dayton, who has said he will sign the bill immediately.

As you know, I helped lead the effort to repeal the warehouse tax. Repealing the warehouse tax received broad bipartisan support and I’m pleased that through the efforts of our local business community, constituents, and legislators on both sides of the aisle, we were successful in repealing it before it went into effect. An Eagan business owner testified in committee about the jobs being lost in our community due to the warehouse tax, and that’s why I focused on this issue.

The bill also repeals the commercial equipment repair (including farm machinery) and telecommunications equipment taxes. The Legislature is able to repeal these taxes in a fiscally responsible manner because the state has a $1.2 billion budget surplus.

Middle-Class Tax Cuts

Whenever Congress changes federal tax law, the Legislature must decide whether to conform to the changes at the state level or not. The state did conform to federal changes for the 2012 tax year. Last session, I co-authored a bill for federal tax conformity for tax year 2013 and beyond. However, this did not end up in the final budget signed into law.

More than one million middle-class Minnesotans will see $225 million in tax cuts due to federal conformity and boosting the state’s Working Family Credit.

The bill increases the Working Family Credit above and beyond federal conformity, providing a total of $66.2 million in tax cuts to 331,000 claimants earning less than $49,103. The average family will see a $146 tax cut through this expansion of the Working Family Credit.

More than a million Minnesotans file their taxes between April 1 and April 15, making quick passage of this bill of the utmost importance. Hard-working middle-class Minnesotans are going to see tax cuts as a result of this bill, and that’s great news.

If you have not filed your tax return, the Department of Revenue is asking that taxpayers wait until Monday to file. If you have already filed your taxes, the Department of Revenue will examine your return to see if you qualify for these tax cuts and notify you if they need more information or if you need to file an amended return.

Education Bills: Supporting Local Control and Early Learning

District 196 Transportation Hub Bill

I’m chief authoring legislation that would give ISD 196 an exemption to use their lease-levy authority for a transportation hub. Doing this will save local taxpayers $500,000 a year, uses our money wisely, and leaves local decisions in the hands of our local schools. My bill was recently heard in the Education Finance Committee and is being laid over for inclusion in a larger omnibus bill.

Early Childhood and Family Education

I’m also chief authoring legislation increasing funding for Early Childhood and Family Education programs (ECFE). The bill would also tie ECFE funding to our K-12 funding formula, which it is currently separate from now.

ECFE is based on the idea that the family provides a child's first and most important learning environment, and parents are a child's first and most significant teachers. ECFE works to strengthen families and enhance the ability of all parents to provide the best possible environment for the healthy growth and development of their children.

All forms of early childhood education have shown incredible returns on investment — anywhere from an $8-$16 dollar return for every $1 invested — for our families, schools, economy, and state budget. My bill was heard in Education Finance and laid over for inclusion in a larger bill. I will continue advocating for these great early childhood programs.

Free File Program for E-Filing Tax Return

You may not be aware of this, but taxpayers with a 2013 Adjusted Gross Income of $58,000 or less may visit www.IRS.gov/freefile to prepare, complete and e-file their federal tax returns at no cost.

Free File is made possible through a partnership between the IRS and the Free File Alliance, a coalition of industry-leading tax software companies. Since its inception in 2003, the program has offered 70 percent of taxpayers free access to leading commercial tax preparation software from Free File Alliance member companies. Free File has already saved taxpayers an estimated $1.2 billion in filing costs.

I strongly encourage folks who are eligible for the Free File program in our area to take advantage of it.

To begin, taxpayers should visit the IRS website - www.irs.gov/freefile. You will find a list of companies and may either choose the one that fits their needs or utilize the “help me find a company” tool. After selecting a tax software company, you will be transferred to the company's website to prepare, complete and electronically file their federal income tax returns.

As always, please contact me if you have any questions, comments, concerns, or ideas. Thank you for the honor of representing you in the Minnesota House of Representatives.

Sincerely,

Laurie Halverson

State Representative

District 51B