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Dear Neighbors,

We are one month into the legislative session and bills are slowly starting to make their way out of committees and onto the House floor for final consideration. It’s important that I hear from residents of Rogers, Dayton, and Maple Grove so their voices are best represented when I vote on behalf of District 32A.

·       Click here to take my survey. I welcome and encourage your participation. Make your voice heard!

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1) Tax Bill Returns Only ¼ of Taxes Taken Last Year

2) Education Bills Would Provide Elk River School District Equitable Funding

3) Transportation Bill Proposes to Increase Gas Tax, Metro Transit Improvement Tax

4) Local Lottery Results

5) Visitors

1) Tax Bill Returns Only ¼ of Taxes Taken Last Year

Last week the House and Senate voted to repeal three business-to-business taxes and the gift tax that were all signed into law by Gov. Dayton last year. The bill also conforms state income tax code to federal tax law, allowing Minnesotans to take advantage of standard federal tax deductions and credits on their state tax returns. In short, conformity results in higher tax refunds and more money in your pocket.

In total, the bill returns $443 million to taxpayers—just one-fourth of the $2 billion in taxes that were signed into law last year by Gov. Dayton.

You’ve most likely heard the Governor take credit for ample tax “cuts” with this bill. Truth be told, the “cuts” are what he signed into law last year, and over $1.5 billion in new taxes still exist that affect Minnesotans of all income levels. Though this bill was a step in the right direction, several of us believe we could—and should—be doing more to allow Minnesotans to keep more of their hard-earned money.

Here are more details about the bill:

Tax Repeals

·       Warehousing/storage

·       Telecommunications equipment

·       Farm/commercial equipment repairs

·       Gift tax

For Tax Year 2013 the following credits and deductions are available:

·       Employer paid education assistance

·       Qualified tuition and related expenses

·       Loan forgiveness from income taxes

·       Increased income threshold for the Working Family Credit

·       Employer paid adoption assistance

·       Employer paid education assistance

·       Increased income threshold for student loan interest deduction

Starting in Tax Year 2014:

·       Increased standard deduction for married joint filers

·       Increased eligible expense limit for Dependent Care Credit

Tax Conformity: Do I need to re-file?

I have been contacted by tax preparers and concerned constituents about whether or not they need to re-file their taxes now that conformity is in place. The Department of Revenue (DOR) has advised one of three things will happen:

·       The DOR will fix your return and send a letter explaining what was fixed.

·       The DOR will request more information from the taxpayer to fix a return.

·       The DOR will notify taxpayers that it cannot adjust an existing return and the tax filer will have to provide an amended return.

Taxpayers are advised to contact the DOR at (651)556-3000 if they have additional questions.

2) Education Bills Would Provide Elk River School District Equitable Funding

I am co-author of two bills (HF2588 and HF831) that would provide equitable funding to the Elk River School District #728, and also give the school district the discretion to use previously voted-upon bonding money for other critical projects (for instance, more space for all day Kindergarten).

The funding disparity between school districts just outside the 7-county metro (like Elk River) and those inside it has been an issue for years, and I will continue to work to the best of my abilities to ensure all students, regardless of zip code, receive fair funding.

The bills were heard in the House Education Finance Committee last week and were laid over for possible inclusion in a larger education bill. I will keep you updated on their progress.

3) Transportation Bill Proposes to Increase Gas Tax, Metro Transit Improvement Tax

The House Transportation committee passed a bill last week that would create $750 million in new taxes to go toward road and bridge repair and transit projects.

The bill seeks to increase the state gas tax on the wholesale level, resulting in about a 12 cent per gallon increase. It would also quadruple the metro transit tax to fund transit programs, like light rail and bus services.

This plan funds roads and bridges less than 20% of statewide need, yet it funds metro transit by nearly 150%, if using the parameters set down by the Governor’s Transportation Finance Advisory Group report.

This bill lacks support among both Democrats and Republicans, and it is doubtful this bill will pass the Tax Committee. I will be certain to keep an eye on its movement.

4) Local Lottery Results

Last year the Minnesota State Lottery achieved its sixth consecutive year of record sales, contributing $135 million to state programs, including the General Fund, Environment and Natural Resources Trust Fund, and Natural Resources Fund and Game and Fish Fund.

Statewide, lottery sales reached $560 million. In our district:

·       Retailers sold $2.8 million in lottery products ($1.5 million in scratch games, $1.26 million in lotto games)

·       Businesses selling lottery products earned $177,500 in commissions and incentives

5) Visitors

Thanks to everyone who stopped by my office last week!

·       John Satumba, Maple Grove, discussed Bell Museum funding

·       David Stene, Dayton, and Raymond Goertz, Maple Grove, discussed CPA issues

·       Kathy Engstrom, Rogers, discussed epilepsy issues

·       Scott Lindquist, Dayton, an electrical worker

·       Lorrie Link, Maple Grove, with the MN Lyme Association

·       Mike Vestal, Rogers, teacher

If you’re ever at the State Capitol, please do not hesitate to contact my office to set up a meeting. I can be reached at rep.joyce.peppin@house.mn or 651-296-7806. I’m here to serve you!

Have a great week,

Joyce

**Encourage your neighbors and friends to sign up for my email updates at www.house.mn/34A