St Paul (December 3, 2015): According to the National
Federation of Independent Business (NFIB), today’s large projected $1.87
billion budget surplus gives legislators a real opportunity to enact
significant tax relief and reforms to help small business and our state’s
economy.
According to NFIB Minnesota’s state director, Mike
Hickey, “The time to enact tax reforms and reductions is when you have a
large surplus. That time is now and the legislature should not pass up this
opportunity to strengthen our economy and empower the small business
community.”
NFIB’s top tax priorities in the 2015 House tax bill
which passed the House and is now in conference committee were to finally
conform Minnesota’s estate tax exemption to the federal and a reduction in the
high tax rate on commercial property.
“This continuing large surplus really gives us the
opportunity to reform the estate tax and reduce commercial property rates. The
House has strongly embraced both of these proposals and the thousands of
members that we have at NFIB are hoping the Senate will do the same. Hopefully
Governor Dayton will sign any bipartisan agreement related to tax
reductions” said Hickey
The 2015 House tax bill increased the current estate tax
exemption from $1.4 million to $5.43 million per person putting it into
conformity with the federal. Any Minnesota taxpayer who does not have federal
liability would not have state liability if enacted. The House bill also phased
out the statewide portion of the commercial property tax which would reduce
business property taxes by 20 to 30% for all businesses and make Minnesota
significantly more competitive on a large regressive fixed cost that businesses
must pay regardless of profitability. If
enacted, both of these provisions would provide a significant boost to small
business and the state’s economy.
“Interstate competition to attract businesses is
increasing exponentially. If these changes are enacted, Minnesota will be well
on its way to not only retaining our existing businesses, but attracting new
ones as well. A better small business climate means more jobs and greater
opportunity for our state as a whole,” concluded Hickey.
