ST. PAUL, MN - Governor Mark Dayton today signed legislation (Chapter 1, HF 6) that will simplify tax filing and provide $20 million in immediate tax savings to more than 200,000 middle-income Minnesotans. The tax conformity bill - which moved quickly through the Legislature and received broad, bipartisan support - was enacted in time for the state to implement the changes with minimal disruption to Minnesota taxpayers.
"The bill I signed into law today will put more money in the pockets of over 200,000 middle-income Minnesotans," said Governor Dayton.
"It also clarifies the law that will provide state funding for the Destination Medical Center - a project that is vitally important for our state's economy and quality of life. I thank the Legislature for acting quickly to pass this important legislation."
"We needed quick legislative action to ensure a smooth tax filing season for the thousands of taxpayers who began filing their taxes this week," said Revenue Commissioner Cynthia Bauerly.
"We applaud lawmakers and the Governor for their timely, bipartisan effort to pass this bill and make filing easier for Minnesota taxpayers."
Tax Relief for 200,000 Middle-Income Minnesotans
The tax conformity legislation signed into law today by Governor Dayton will provide direct savings to more than 200,000 middle-income Minnesotans, including:
Students and Families - More than 40,000 college students and their families paying for higher education tuition will see a tax break.
Teachers - More than 60,000 teachers will be eligible for a tax deduction for the books, art supplies, and other materials they purchase for their classrooms.
Homeowners - More than 96,000 new homeowners who pay mortgage insurance premiums for their residences will see a tax break. Additionally, homeowners struggling to recover from the housing crisis - those who suffered through a short sale or refinanced their homes - will get relief by excluding the discharge of their debt from their income.
Special Needs Minnesotans - The Achieving a Better Life Experience Act (ABLE) allows disabled or blind Minnesotans to set up a tax-free ABLE account. Modeled after 529 college plans, ABLE accounts allow people with disabilities to save up to $100,000 without losing government benefits, and make withdrawals for expenses such as housing, health care, and employment training.
Destination Medical Center Technical Provision
The legislation signed into law today also clarifies a key provision in statute, defining the funding mechanism for the Destination Medical Center project in Rochester, Minnesota. The 20-year Destination Medical Center public-private partnership is aimed at securing Minnesota's competitive position as an international hub for health care and medical advancement, and making the Rochester region an economic center for job growth and business development. The state's $455 million investment in the project over the next two decades will leverage an estimated $5.6 billion in local and private investment, and create tens of thousands of new jobs.
More information about the project is available online.
