A
weekly
message
from
your
Senator
Dear
Constituents
and
Friends,
Committees
are
now
in
full
swing
and
bills
have
also
been
taken
up
on
the
Senate
floor
for
final
passage. Next
week
we
look
forward
to
the
February
forecast
scheduled
to
be
announced
by
Minnesota
Management
and
Budget
on
Tuesday,
Feb.
28.
This
is
an
important
day
for
legislators,
as
it
will
help
guide
budget-making
for
the
next
two-year
biennium.
Please
consider
joining
us
at
the
SD49
Day
at
the
Capitol
next
Friday,
February
24th.
Thank
you,
Senator
Melisa
Franzen
Committee
considers
statewide
business
property
tax
reductions
The
Senate
Tax
Committee
considered
five
similar
bills
on
Thursday
aimed
at
the
same
goal:
reducing
the
statewide
business
property
tax
charged
to
commercial-industrial
and
seasonal
recreation
(cabin)
property
in
Minnesota.
Also
known
as
the
General
Levy,
it
is
the
only
property
tax
levied
by
the
state
all
others
are
imposed
by
local
governments
and
school
districts.
It
was
created
in
2001
as
part
of
a
property
tax
reform
package
that
also
reduced
aspects
of
business
and
cabin
property
taxes,
but
the
tax
rate
and
structure
hasn’t
been
significantly
revised
since
its
inception.
The
2016
tax
bill
included
a
bipartisan
plan
to
reduce
this
tax,
exempting
the
first
$100,000
in
market
value
from
taxation.
That
cost
about
$115
million
in
2018-2019
and
was
a
major
financial
piece
of
the
tax
bill,
which
was
vetoed
for
other
reasons.
There
is
bipartisan
support
for
changes
this
year
as
well,
but
some
of
the
plans
can
end
up
costing
upwards
of
$1
billion. According
to
the
nonpartisan
2015
Minnesota
Tax
Incidence
Study,
53%
of
the
statewide
business
property
tax
is
paid
by
non-resident
corporations.
In
other
words:
for
every
$1
spent
to
completely
eliminate
the
statewide
business
property
tax,
Minnesota-based
businesses
would
only
see
47
cents
of
that
tax
relief.
The
bills
were
laid
over
for
possible
inclusion
in
the
Omnibus
Tax
Bill.
Bill
aims
to
support
local
car-sharing
options
As
the
number
of
Minnesotans
who
do
not
own
vehicles
either
for
financial
reasons
or
by
choice
increases,
the
popularity
of
car-sharing
services
providing
short-term
car
rental
options
increases.
Some
lawmakers
believe
Minnesota’s
laws
have
not
kept
pace
with
the
growing
demand
for
such
services.
A
bill
heard
in
the
Senate
Tax
Committee
this
week
would
exempt
these
transit
alternatives
from
the
higher
tax
rates
charged
on
more
traditional
vehicle
rentals
that
are
more
typically
used
by
out-of-state
visitors.
In
Minnesota,
most
short-term
vehicle
rentals
are
subject
to
the
state’s
general
sales
tax,
a
9.2%
rental
tax
and
a
5%
fee,
in
addition
to
any
local
sales
taxes
in
effect
within
the
area
the
car
is
rented.
From
2013
until
December
2016,
there
were
about
600
cars
available
for
sharing
in
the
Twin
Cities
metropolitan
area,
but
that
number
is
down
to
about
175
since
one
major
company
left
the
market
last
year,
citing
these
high
fees.
The
proposal
heard
this
week
would
exempt
such
vehicles
from
the
9.2%
rental
tax
and
5%
fee
in
an
effort
to
support
existing
companies
and
attract
new
ones
that
can
provide
Minnesotans
with
other
economical,
environmentally
friendly
transportation
alternatives.
The
bill
was
passed
to
the
Transportation
Committee.
(SF
133)
Preemption
bill
moves
closer
to
passage
Opponents
of
a
bill
that
will
strip
away
the
power
of
local
governments
to
pass
progressive
labor
benefit
policies
filled
the
Minnesota
Senate
Building
again
this
week.
Testifiers
talked
about
the
hope
that
these
policies
in
Minneapolis
and
St.
Paul
have
given
to
residents,
and
the
unfairness
of
retroactively
removing
the
policies
before
they
are
set
to
go
into
effect
this
summer.
From
small
business
owners
to
faith
leaders,
the
opponents
were
united
in
their
opposition
to
the
bill. Despite
the
compelling
testimony,
the
Local
Government
Committee
passed
the
bill
to
the
floor
where
it
awaits
a
vote
by
the
full
Senate
body.
This
proposal
is
backed
by
business
groups
in
reaction
to
ordinances
that
were
established
in
Minneapolis
and
St.
Paul
that
required
qualifying
workers
to
have
access
to
paid
leave
benefits.
Proponents
of
this
proposal
worry
that
individual
cities
across
the
state
will
establish
their
own
benefit
policies
which
will
result
in
differences
across
the
state. Labor,
social
justice,
and
local
government
organizations
are
in
opposition
to
the
proposal,
arguing
that
local
elected
officials
are
capable
of
determining
what
is
best
for
their
residents.
Beyond
the
local
government
argument,
some
of
the
opponents
argue
that
there
is
moral
obligation
to
families
who
do
not
have
access
to
leave
benefits.
For
many
families
in
these
cities
and
across
the
state,
it
is
a
choice
between
putting
food
on
the
table
or
taking
their
child
or
parent
to
the
hospital.
(SF
580)
REAL
ID
update
REAL
ID
was
heard
in
the
State
Government
Finance
and
Policy
and
Elections
Committee.
The
next
stop
will
be
the
Senate
Finance
Committee.
The
committee
considered
and
adopted
amendments
related
to
the
rulemaking
provisions
in
the
REAL
ID
bill.
The
amendments
made
the
rulemaking
authority
granted
more
permissive
so
the
commissioner
has
more
flexibility
with
adopting
rules
needed
for
implementation
and
sunsets
the
expedited
rulemaking
granted
on
Oct.
31,
2018,
at
the
latest.
The
REAL
ID
implementation
bill
would
grant
the
Department
of
Public
Safety
(DPS)
the
authority
to
get
Minnesota
driver’s
licenses
and
IDs
compliant
with
the
federal
standards.
The
bill
creates
a
two-tier
system
with
a
REAL
ID-compliant
ID
and
driver’s
license
and
a
noncompliant
instate
ID
and
driver’s
license.
This
allows
those
who
have
privacy
concerns
and
those
who
will
not
be
traveling
by
airplane
to
maintain
their
current
driver’s
license
and
ID,
while
also
allowing
the
traveling
public
to
get
a
REAL
ID-compliant
ID
or
driver’s
license.
DPS
would
have
to
begin
issuing
compliant
IDs
and
driver’s
licenses
by
Oct.
1,
2018.
(SF
166) |