Gov. Walz signs state budget into law Wednesday
(ABC 6 News) – Two days after the end of the legislative session, Minnesota Governor Tim Walz signed the new state budget into law Wednesday at the Minnesota Capitol.
DFL leaders say it includes historic tax cuts, but republicans are pointing out historic tax increases.
The $72 billion state budget was approved, which will cost Minnesotans overall. It will cover a wide-range of issues – from public safety funding to rebate checks that are expected to be sent out this fall, according to a state official.
RELATED: Tax bill passes Minnesota Senate, now heads to Gov. Walz for approval
“In January, I outlined a vision to make Minnesota the best state in the nation for kids to grow up in. Today, we’re turning that vision into reality,” said Gov. Walz. “The work we’ve done over the last five months will make a generational impact on our state – it will lower costs, improve lives, and cut child poverty. The One Minnesota Budget delivers for Minnesotans, and it would not be possible without the leadership and partnership with the DFL-led legislature. I am grateful for their work and look forward to seeing this budget in action.”
Under the budget, a payroll tax will be paid by every employee and employer, for paid family and medical leave. The sales tax on motor vehicles will go up, along with license tab fees and boat registration fees, to help pay for transportation projects.
The gas tax will go up slightly, and there’s also a new 50 cent delivery fee for some purchases of more than $100.
In addition, the seven-county metro sales tax will go up a penny to pay for transit projects and housing programs.
In regard to the rebate checks, couples earning less than $150,000 will get $520, while single tax filers can get $260 if they make less than $75,000. Families earning less than $35,000 will get $1,750 tax credits per child for up to three kids.
In addition, social security income taxes were reduced – but not eliminated.
“There are a lot of bills that will truly help families, the tax bill will – according to the governor – cut child poverty, we passed paid family leave, which a lot of people have been asking for,” said Senate Majority Leader Kari Dziedzic.
“It would be great if the economy could continue forward. You look at the burden this is going to put on Minnesota families and businesses, and you wonder is this going to be sustainable in the long term,” said Senate Minority Leader Mark Johnson.
Gov. Walz will be joined by Lt. Gov. Peggy Flanagan, House Speaker Melissa Hortman, Senate Majority Leader Kari Dziedzic, and other legislators at the bill signing.
Watch the signing below courtesy of Twins Cities ABC affiliate, KSTP-TV.