Tax Chair Representative Marquart Discusses House Omnibus Tax Bill
St. Paul, MN — The Minnesota House of Representatives passed their omnibus tax bill on party line vote to move it on to the Ways and Means Committee. The bill would provide about $4.2 billion in property tax refunds, aids, and credits that Tax Committee Chair Representative Paul Marquart says will provide relief for Minnesota families and small businesses.
Also included in the omnibus tax bill is just under $70 million to provide another round of county relief grants for local businesses and nonprofits in the year 2022, according to Marquart.
The tax bill is not without controversy, however. The bill brings is $49.1 billion in revenue for the next biennium by creating a fifth individual income tax tier of 11.5% for individuals earning more than $500,000 or married couples earning more than $1 million. The other big source of revenue would be through a change in corporate franchise taxes that would make all income of a controlled foreign corporation subject to the state’s apportionment formula, or require it to report its worldwide income, which would then be subject to state taxes.
The Senate Republicans have stated that the fifth tier tax bracket is a “no-go” for them, but Representative Marquart hopes he can work them to get corporate franchises to pay their fair share.