Local legislator seeks more permanent tax relief measures during current legislative session
Minnesota House Democrats last week said “no” to Republicans’ demand for an immediate vote on a state gas tax “holiday” to run Memorial Day through Labor Day, saying there’s plenty of time for public hearings. State District 27A Representative Peggy Bennett, a Republican from Albert Lea spoke with KAUS News and stated that she would like to see more permanent tax relief measures passed during this legislative session…
Currently, motorists in Minnesota pay 28.5 cents in state taxes plus 18.4 cents in federal taxes on each gallon of gasoline they pump. The money is dedicated solely to roads and bridges and is considered a user fee because the people who use the roads pay for the upkeep via the fuel tax. Democrats who first proposed the bill stated that the gas tax holiday would cost MNDOT roughly $200 million in lost revenue, which they proposed replacing with an equal amount from the state’s General Fund. Republicans are pushing for more permanent tax relief, as the Senate GOP has proposed using $3.5 billion of the surplus to cut the lower income tax rate from 5.35% to 2.8%. That tax cut would be permanent and ongoing.
Republicans also want to exempt all Social Security income from state taxes, which would use $539 million of the current surplus, and also be ongoing year after year.