Senate and House GOP conferees agree on tax cut bill for Minneso - KTTC Rochester, Austin, Mason City News, Weather and Sports

Senate and House GOP conferees agree on tax cut bill for Minnesotans; Gov. Dayton's staff reviewing proposal

ST. PAUL, Minn. (KTTC) -

Minnesota Republican Senate and House conferees have come to an agreement on tax cut conformity legislation, and say they will now work with Governor Mark Dayton on a final deal in the days ahead.

The State Legislature must by law adjourn the current session a week from Monday.

"This proposal would be a victory for middle class families including what would be the first income tax rate cut in nearly two decades, and represents a serious effort on the part of the legislature to reach agreement with the governor," said Rep. Greg Davids, R-Preston, Chair of the House Taxes Committee, in a statement sent to reporters. "This issue is too important to wait until next year — we are committed to working with the governor in the final days of session so Minnesotans can avoid hassles, headaches, and tax increases next year."

Under the legislation agreed upon by members of the House and Senate Tax Omnibus Conference committee, the 1st income tax bracket would drop from the current 5.35% to 5.3% this biennium and 5.25% beginning in Fiscal Year 2019.  The 2nd income tax bracket would drop from the current 7.05% to 6.95% this biennium, and 6.85% beginning in Fiscal Year 2019.

A summary of the Republican plan can be found here.

Governor Mark Dayton office has not indicated support for the Republican compromise. His staff was studying the Republican compromise Friday night while Dayton was preparing to head out on the Governor's Fishing Opener Saturday morning on Green Lake near Spicer.  In mid-March, the governor unveiled his own proposal to align Minnesota's tax code with the federal tax changes, and he warned at that time that it was going to be complicated.  

A summary of the Governor's tax conformity proposal can be found here.

The GOP said Friday that the bill would preserve a number of tax deductions at the state level, which was a priority for both Governor Dayton and the Senate Republican caucus.  It would also switch the "starting point" for Minnesota's income tax from federal taxable income to federal adjusted gross income, which was said to be a priority of the House Republicans.

“The Republican tax plan rewards 82% of working families with a middle-class tax cut, protects 99.8% of Minnesotans from a tax increase, and prioritizes economic growth. It will allow Minnesotans to keep more of their hard-earned money, and provide a good starting point toward larger reforms in the future,” said Sen. Roger Chamberlain, R-Lino Lakes, Chair of the Senate Taxes Committee.

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