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Minnesota House Approves $500-Million Tax Cut Package

State Capitol
(Photo by Hannah Foslien/Getty Images)`

ST. PAUL, Minn. (AP) — The Minnesota House has given overwhelming approval to a $500 million package of tax cuts and repeals.

Thursday’s 126-2 vote comes just more than a week into the legislative session. The bill heads to the Senate, where leaders haven’t publicly embraced the plan.

Gov. Mark Dayton and many in the Legislature are racing to undo some business sales taxes adopted last year, including one on warehousing services due to kick in April 1.

The bill also aligns Minnesota’s tax code more closely with the federal one, making some exemptions and deductions available to state filers. Some of those breaks would be effective for people filing tax returns now.

Democrats said the state’s improved budget allowed for tax relief. Republicans said the package should have been bigger.

 

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