Our

Plan

Minnesota House Republicans believe in:

using tax dollars responsibly
demanding accountability in state spending
lowering the tax burden for all Minnesotans
providing real property tax relief directly to taxpayers
encouraging jobs and growth with competitive tax rates for businesses

More than just talk
With a $2 billion budget surplus, now is the time for real tax relief. Long before Democrats proposed billions of dollars worth of tax increases, House Republicans offered a comprehensive tax relief package for all Minnesotans.

Real, long-term property tax relief requires local governments to control spending. That’s why Rep. Steve Sviggum (Kenyon) proposed to give the $1 billion of one-time money back to property tax payers in the form of 15 percent property tax relief in counties where local government budgets are held to growth no higher than inflation.

Our state’s success depends on all of us working together as one, moving in the same direction. Instead of dividing Minnesotans, Republicans proposed to distribute the $1 billion of long-term surpluses across several tax-cutting plans that will benefit everyone.

Rep. Laura Brod (New Prague) proposed to lower the bottom two tiers of state income tax rates. This would cut income taxes for everyone, but provide key relief to working class families.

Rep. Tom Emmer (Delano) would help families save for college with income tax deductions of $5,000 for individuals or $10,000 for couples who contribute to the Minnesota College Savings plan.

How long do you think we should balance the 1992 budget? Rep. Dean Simpson (New York Mills) wants to repeal the “temporary sales tax increase” that was adopted as a budget-balancing measure in 1992. With 15 years elapsed and a $2 billion surplus, the “emergency” is over and the “temporary” tax should end.

Rep. Randy Demmer (Hayfield) proposed to exempt farm acres from property taxes imposed through school levies. Schools should tax the house, the garage, and one acre, but not impose property taxes on acres that send no children to local schools.

Rep. Dean Simpson supported a repeal of the hidden “sick tax” which is applied to doctor visits and other medical assistance.

They’re back! Tax-and-spend Democrats emerge from hiding with billions of dollars worth of tax increases. Here’s a brief sample of what they would like to make more expensive:

THE CURRENT “MAIN CONTENDERS” FOR TAX INCREASES
California, here we come! Create a new income tax rate for the top 1 percent of Minnesota earners. Approved by the House Committee on Ways & Means, this new tax on “The Rich” would actually hit an estimated 16,500 small businesses, according to House Research. The Senate now wants to impose a 9.7 percent tax rate on even more people. This would be the highest income tax rate imposed by any state. Yes, even higher than California.

The House Committee on Ways & Means also approved a $244 million tax increase on Minnesota employers who have sales or operations in other states. Democrats call these employers “foreign operating corporations” or “FOCs.”

$450 Per Driver In Gas And Other Transportation Taxes: The House has passed a "first draft" of a bill that would:

raise gas taxes to grab $332 million per year;
allow counties to impose "wheelage taxes" on every car to grab $92 million per year;
raise the price of license tabs to grab $59 million per year;
allow metro counties to raise sales taxes to grab $222 million per year;
allow a metro tax on new cars to grab $3.2 million per year;
allow a new state-wide sales tax for transportation to grab $362 million per year;
add a dedicated sales tax on cars that will be used for leases to grab $36.4 million per year.

Property Tax Increases On Small Businesses: Both the House and Senate Democrats have proposed about $200 million of property tax increases on employers, on top of their massive income tax increase.

Property tax relief…they hope: The Senate has proposed $225 million of “property tax relief” that would primarily consist of taking a large portion of your tax payments and sending them to county commissions, city councils, and school boards for more government spending.

SALES TAXES ON CONSUMERS
Rep. Tony Sertich (D-Chisholm) wants to raise the sales tax by at least $17 million to pay more for the arts and for natural resources projects. (House File 2285)

You are rich if you make over $36,000 per year. Rep. Melissa Hortman (D-Brooklyn Park) has offered another big sales tax hike. In this version, sales taxes now would be collected on clothing. A tax credit would be offset this tax increase for some working Minnesotans, but that would begin to shrink for individuals who make $36,000 or couples who earn $48,000. (House File 2163)

Rep. Melissa Hortman (D-Brooklyn Park) wants to add sales taxes on things ranging from baby’s first hair cut to grampa’s funeral. She wants to impose sales taxes on magazines, car repairs, legal services to individuals, accounting for individuals, financial services for individuals, brokerage services for individuals, tattoos, body-piercing, hair cuts, hair styling, hair extensions, facials, body wraps, shaving and waxing, tanning services, manicures, pedicures, insulin, medical oxygen, over-the-counter drugs, prescription eyeglasses, and funeral services. Finally, Democrats have figured out away to make death and taxes one and the same. (House File 2163)

Rep. Melissa Hortman (D-Brooklyn Park) wants to impose an extra sales tax to pay for transit and other purposes. In the Metro area, there would be one tax increase. In the rest of the state, the new tax could be proposed by any two or more county boards. (House File 1463)

Rep. Rick Hansen (D-South St. Paul) would impose an extra sales tax to raise at least $500 million a year pay for new parks, trails, and habitat projects. (House File 1449)

Rep. Shelley Madore (D-Apple Valley) wants to impose an extra sales tax on the entire metro area to pay for more buses and trolleys. (House File 1112).

TAX THE DEAD, THE DRIVERS, THE HOMEOWNERS, THE PAINT ON THEIR HOMES
Rep. Bernie Lieder (D-Crookston) wants to triple a tax on hearses. In case you’re counting, this is their second attempt to combine death and taxes. (House File 946)

Homeowners would face a 50 percent increase when filing any papers related to the purchase, transfer, mortgaging, sale, or other transfer of property. Money from those taxes on homeowners would be given to non-homeowners seeking to rent property or buy their own homes. Rep. Scott Kranz (D-Blaine) wrote House File 939.

Rep. Frank Hornstein (D-Minneapolis) wants to let any three-county panel impose sales and use taxes on motor vehicles. (House File 1920)

Sen. Linda Higgins (D-Minneapolis) wants to impose a new tax on paint. (Senate File 836)

Rep. Jean Wagenius (D-Minneapolis) wants to impose a 25-cent tax on every incandescent light bulb in the state. (House File 2156)

Rep. Jim Davnie (D-Minneapolis) wants to put a tax of 91-cents-per-ounce on moist snuff. (House File 2311)

TAXING ALCOHOL AND COSMETIC SURGERY
Rep. Phyllis Kahn (D-Minneapolis) wants to tax cosmetic surgery. (House File 1027)

Rep. Michael Paymar (D-St. Paul) wants to pile enormous tax increases on beverages containing alcohol. He would raise taxes on metric sales beverages by the following percentages:

distilled spirits (up 228 percent);
wine (up 450 percent);
hard cider (up 800 percent);
regular beer (up 790 percent);
3.2percent beer (up 457 percent).

Rep. Karen Clark (D-Minneapolis) is seeking similar increases in taxes on alcohol, but for other purposes. (House File 1446)

TAXES ON FRIENDS AND RELATIVES
Rep. Joe Mullery (D-Minneapolis) wants to put a 10 percent tax on people who give gifts. If the donor does not pay the tax, then the tax liability shifts to the person who received the gift. In such cases, the donor would still be liable for a $100 penalty for not paying the gift tax. Under the bill, you could be required to show the gift to the Commissioner of Revenue to determine its true worth. (House File 1212)

REACH OUT AND TAX SOMEONE
Rep. Debra Hilstrom (D-Brooklyn Center) wants to raise a tax on cell phones, land-line phones, and other telecommunications devices by 46 percent. Can you tax me now? Can you tax me now? (House File 1464)

GIVING BEGINS AT HOME
Rep. Michael Nelson (D-Brooklyn Park) wants to shift property taxes to regular citizens in order to give tax increment relief to the owners of the Mall of America who want to expand the facility without paying sales taxes on the materials for the expansion. The state would provide $180 million to build new parking ramps, and Blooming taxpayers would provide $42 million for new streets, water, sewer, and other improvements. (House File 2237)

Rep. Rick Hansen (D-South St. Paul) would impose a local food and beverage tax on Mendota. (House File 2261)

Rep. Ken Tschumper (D-La Crescent) wants to impose a local sales tax in Lanesboro. (House File 2243)

Rep. Deb Hilstrom (D-Brooklyn Center) wants to shift property taxes from one set of residents to another by expanding the use of the local tax increment financing district. (House File 2193)

Rep. Frank Moe (D-Bemidji) would raise local sales and use taxes on his constituents. (House File 1103)

Rep. Bernie Lieder (D-Crookston) wants to raise local sales and use taxes in Crookston. (House File 1820)

Rep. Will Morgan (D-Burnsville) wants to create special tax increment financing districts in Burnsville. These districts often shift property tax burdens onto current landowners for years. (House File 1054)

Rep. Carolyn Laine (D-Columbia Heights) wants to create a special tax increment financing district in Columbia Heights. (House File 1879)

Rep. Carolyn Laine (D-Columbia Heights) wants to create a tax increment financing district in Fridley. (House File 2121)

Rep. Terry Morrow (D-St. Peter) wants a new local sales tax authorized for North Mankato. (House File 108)

Rep. Bill Hilty (D-Finlayson) wants a new local sales tax authorized for Cloquet. (House File 885)

Rep. Dave Dill (D-Crane Lake) would extend local sales taxes in Cook County. (House File 1894)

Rep. Mike Jaros (D-Duluth) to raise taxes on food and beverages in Duluth to help to pay for a new hockey arena in that city. (House File 134)

Rep. Rick Hansen (D-South Saint Paul) wants to impose a food and beverage tax on Lilydale. (House File 2102)

Rep. Dave Dill (D-Crane Lake) would impose an Ely local sales & use tax. (House File 2059)