SMALL BUSINESS CALLS ON DAYTON TO AVOID FUTURE POLITICAL GAMES WITH TAX BILL
ST PAUL (June 7, 2016): The National Federation of Independent Business (NFIB) was deeply disappointed by Governor Dayton’s veto of a significant tax bill for both the small business community and taxpayers as a whole. The bill contained, among other favorable provisions, a property tax reduction for struggling small businesses.
“The tax bill had strong bipartisan support and was the product of a tremendous amount of hard work. It’s incredibly disappointing to see it all be thrown away by Governor Dayton’s veto,” said NFIB Minnesota State Director Mike Hickey.
The centerpiece provision for small business was the commercial property tax relief provided through exempting the $100,000 of value from the state general tax.
“Commercial property tax relief would have really helped struggling small businesses,” said Hickey. “Very small businesses with taxable values of $100,000 or less would have received a 20 to 30% reduction, which would have been a game changer for those fighting to keep their doors open. Even businesses with a $200,000 taxable value, which is a very common size in rural Minnesota, would have received about half of that, which is still a significant savings.”
Based on sampling that NFIB has done of property tax statements, most small businesses would have received between $700 and $900 in addition to a reduction in their property taxes.
“Hopefully, the tax bill can be re-passed, but thanks to past actions by this legislature, we are skeptical. Today, a real opportunity was lost to help small businesses and many other taxpayers due to the governor’s actions,” said Hickey. “We certainly urge Governor Dayton to work out an agreement on the tax bill that will address his concerns, but it is vital that he does so without tying passage of tax relief for small businesses to more polarizing and partisan issues.”
Hickey also highlighted a provision in the bill for farmers that would have provided assistance with the high cost of school bond referendums. If passed again, the provision would reduce the amount of farmer’s property taxes by 40%, providing some badly needed relief.
“Many of our farm members have been hit hard by school bond referendums due to the large amount of land that they own, and this provision would bring some fairness into how referendums are financed,” concluded Hickey.
