Minnesota Senate passes GOP tax relief measures

The Minnesota Senate has passed a bill to reduce and eventually eliminate the state's property tax on business and give an income tax break to married couples.

The Senate passed the GOP-sponsored bill Friday on a party-line vote of 34-26. Republicans say reducing the tax burden on businesses is the best way to improve the state's climate for creating jobs, but Democratic Gov. Mark Dayton says property tax relief should be shared by homeowners.

"What is does is it takes the property tax that businesses pay into the state and they can use that in their business to expand, hire people, whatever," District 21 Sen. Gary Dahms, R-Redwood Falls, said Friday. "It also makes it more attractive for businesses to come to Minnesota because they would not have that tax obligation to the state."

Dayton's proposal to give businesses direct tax credits to create jobs has not won favor with Republicans.

The Senate's tax relief would cost the state about $100 million in tax revenue. The bill's sponsor, Sen. Julianne Ortman, says she wants to cover that by cutting state administrative costs and dipping into budget reserves.

From staff and wire reports

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