Senate Passes First Bills of the Session

This week the Senate passed the first two bills of the 2015 legislative session, S.F. 1, a bill providing funding for statewide disaster relief and S.F. 50, a bill providing for federal tax conformity. 

In more detail, S.F. 1 provides funding to match federal disaster assistance covered by the Presidential Declaration of Disaster FEMA DR-4182 covering 37 counties and three tribal governments following the flooding last year. The bill also provides funding to the Board of Water and Soil Resources to repair damage to water and land infrastructure via erosion and sediment control projects as well as funding for Department of Transportation to match Federal Highway Administration emergency relief funds to repair local roads damaged by the flooding.

The tax conformity provisions in S.F. 50 retroactively conforms Minnesota's individual income tax and corporate franchise tax to most federal changes enacted since March 26, 2014. The federal changes to taxable income affect tax year 2014 only. A significant number of Minnesota taxpayers will benefit from these tax relief extenders. An estimated 60,000 homeowners will benefit from the mortgage insurance premium deduction; 60,000 teachers will benefit from the continued classroom expense deduction, and 9,000 college students will benefit from the higher education tuition deduction.

"Retire in Minnesota Act"

This week, along with several of my Republican colleagues, I introduced S.F. 123, the "Retire in Minnesota Act" which will gradually phase out the Minnesota income tax on social security income by 10 percent each year for 10 years, at which time it will be completely eliminated. It is projected the phase out will provide upwards of $400 million per year in tax relief.

Minnesota is one of only 7 states that still taxes seniors on their Social Security income. Seniors are being taxed twice on their social security income – once when they pay in to the system, and a second time when they receive their benefits later in life. After decades of contribution to our state economy, retirees deserve to retire in their home state without being penalized by double taxation on their Social Security benefits.

Too many of our parents and grandparents, who rely on social security income, are finding it more and more difficult just to get by. Rising costs for property taxes, electricity bills, health care, and groceries are even forcing some of them to get a part time job. We're talking about members of our families and our communities. The "Retire in Minnesota Act" will make it easier for them to live here, to stay in their homes, and enjoy their retirement.

Let's fix this injustice so our seniors can enjoy retirement in their home state of Minnesota.