Nearly 1 million Minnesotans will get $103 million in new tax breaks as part of an agreement among legislative leaders on Thursday, with more than half devoted to direct property tax relief for homeowners, farmers and renters.
"We wanted to do it as direct as possible," said state House Taxes Committee chairwoman Ann Lenczewski, DFL-Bloomington. Homeowners, renters and farmers will get "supersized" rebates this year.
House and Senate DFL leaders have been working for weeks to agree on a tax relief package using the remainder of the state's $1.2 billion projected budget surplus.
House Minority Leader Kurt Daudt, R-Crown, said there is strong bipartisan support for tax relief this session. He has not reviewed the measure in detail, but expects it to have at least some Republican support.
About 940,000 homeowners, renters and farmers would get additional tax breaks as part of the new measure.
Legislators earmarked $17 million in property tax relief for more than 90,000 farmers. The average farmer in Minnesota would get $410 in direct property tax relief, an increase of about $200.
Homeowners would share $12.1 million in property tax relief and renters would get an additional $12.5 million in property tax breaks for the year.
"There is a good balance of tax relief for everyone," said Senate Taxes Committee chairman Rod Skoe, DFL-Clearbrook.