Notable provisions that have now taken effect (6/29/2017)

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By Rep. Tony Jurgens, 6/29/2017

Hello from St. Paul,

The last day of the legislative session typically ends in mid-May, but many of the laws we approve ultimately take effect on July 1. In talking to a number of veteran Capitol lawmakers, I’m told this was one of the most productive sessions we’ve had in quite some time, so I thought I’d update residents on some of the more notable provisions that have now taken effect.

It’s worth remembering that we delivered the largest tax relief package for Minnesotans in nearly two decades. While tax changes do not specifically take effect July 1, the 2017 Tax Relief bill delivers $650 million in tax relief to Minnesota families over the next two years, and $790 million in 2020-2021. The following highlights all are in effect for either tax year 2017 (for filings made in 2018), or in calendar year 2018 (the property tax provisions):

  • Social security tax relief for nearly 284,000 senior citizen tax returns (single and married filing jointly).
  • Property tax relief for small business owners by eliminating the state property tax on the first $100,000 of value on commercial real estate.
  • An increased child care tax credit so a family of four making $50,000 will get $1,200 more.
  • A student loan credit that will give 65,000 students an average of a $414 reduction.
  • A 40% reduction in school levy property taxes on farmland.

Lawmakers also approved the largest investment in roads and bridge infrastructure in state history without a gas tax increase. In total, the law will appropriate roughly $6.5 billion in the 2018-19 biennium primarily from the Trunk Highway Fund; County State-Aid Highway Fund; and the Municipal State-Aid Street Fund.

The law reallocates $300 million in motor vehicle-related state sales tax revenues from the General Fund to go toward transportation spending. This includes the remaining share of general sales tax from motor vehicle leases that is not already allocated to roads and transit; the short-term motor vehicle rental tax; the general sales tax from short-term motor vehicle rentals; and a portion of general sales tax from motor vehicle repair and replacement parts.

Our new K-12 education funding law increases the General Education Basic Formula by two percent per year. How will this law benefit local schools? Hastings is expected to see a $1.825 million general education revenue increase, and South Washington County Schools will see a $7.703 million increase.

Finally, July 2 marks the day that you can legally buy alcohol from a liquor store in Minnesota on Sundays. The new law removes the prohibition on off-sale Sunday liquor sales, allowing stores to sell alcohol between 11 a.m. and 6 p.m., and barring those stores from receiving deliveries on Sundays.

As always, residents are encouraged to contact me at any time with questions or concerns. I can be reached at rep.tony.jurgens@house.mn or by phone at 651-296-3135.

Have a good weekend,
Tony

Representative Tony Jurgens
523 State Office Building
100 Rev. Dr. Martin Luther King Jr. Blvd.
Saint Paul, Minnesota 55155
651-296-3135
rep.tony.jurgens@house.mn

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