Tax Bill Vote Today-Contact Legislators

The Minnesota House and Senate have unveiled their plans for solving the budget deficit. The House Omnibus Tax Bill includes a net tax increase of $1.5 billion and the Senate Omnibus Tax Bill proposes a net tax increase of $2.2 billion. It is anticipated that the Senate bill will be on the floor tomorrow and the House bill on Saturday. We urge you to contact your legislators today to let them know how the tax increases in HF 2323 and SF 2074 will negatively impact your business (see below).

Rep. Kory Kath
Email: rep.kory.kath@house.mn
Phone: 651-296-5368

Sen. Dick Day
Email: sen.dick.day@senate.mn
Phone: 651-296-9457

Here is a short list of the tax proposals that will affect Minnesota employers:
House Ombnibus Tax Bill – $1.5 Billion Tax Increases
Lodging Tax
We oppose giving cities the authority to use local lodging tax revenue for general purposes. This money is intended to promote the local community and diverting this revenue to other purposes risks losing tourism to locations in other states.

Creation of a 4th Tier Income Tax Rate at 9%
Most small-business owners report business income on their personal income tax return, so a personal income tax increase would hurt small employers – and their employees. The substantial increase would also make it more difficult and more expensive for employers to recruit top talent to work in Minnesota, creating an incentive to locate those positions elsewhere.

Street Improvement Fee
The street improvement “fee” gives cities the authority to impose an additional tax to fund a laundry list of transportation-related projects. These districts could be drawn arbitrarily, taxes apportioned inequitably – without any requirement to establish a benefit to the property owners being taxed.

Senate Omnibus Tax Bill – $2.2 Billion Tax Increases
Income Tax Increases and the Creation of a 4th Tier at 9.25%
Minnesota already has the sixth highest per capita income tax burden in the nation. The Senate legislation will increase income taxes across all brackets AND create a 4th tier at 9.25% for joint filers with income above $250,000. As a result, Minnesota would have the fourth highest tax rate in the nation.

Statewide Property Tax Increase
Minnesota employers continue to pay high property taxes. In some areas of the state, the business property tax burden is among the heaviest in the nation.

Halting the Sales-Only Apportionment
In 2005, state lawmakers recognized that allocating corporate income taxes based on Minnesota sales, property and employment actually penalizes companies for investing and creating jobs in Minnesota. Lawmakers committed to moving Minnesota’s corporate income tax apportionment to a sales only factor by 2014. Rather than freeze the phase-in of sales-only apportionment, the Senate should follow the House’s lead and move immediately to a 100 percent sales factor in 2009.
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TEXT OF LETTER

Dear [Representative/Senator],

I oppose the tax increases in HF 2323 and SF 2074 and I urge you to not support any tax increase on job providers to solve the budget deficit. The state government is not the only one facing financial difficulties.

[optional personalized paragraph]

Minnesota businesses are doing everything we can to cut costs and keep our workers employed. We don't have the option of simply increasing our revenue. If you try to solve the deficit by adding to our already high tax burden, you will only be adding to our financial difficulties.

Please do not raise taxes. As one of your constituents, I will look forward to your leadership and voting support on this issue.

Sincerely,


Constituent Name
Address