Facility Fallout

Lack of Governor’s Signature Vetoes Tax Bill

By June 7, 2016 No Comments

The lack of Governor Mark Dayton’s signature yesterday on the omnibus tax bill means it has been vetoed. Included in the vetoed bill was Ag2School, a new school bond property tax credit for agricultural land.

This also means nearly $260 million in tax cuts for next fiscal year and $500 million in ongoing, biennial tax cuts will not move forward without it passing again in a special session.

The Ag2School property tax credit program would have gone a long way in helping school districts work with farmers to pass school building bonds. View the response in this video of the news conference.

The Minnesota Department of Education (MDE) released a projected run of the 40 percent Ag2School credit that affects all bonded facility debt, including Voter Approved, Alternate Facilities, and Capital Facilities Bonds. View MDE’s Projection of the Impact

Special Session Demands

Gov. Dayton last week outlined his special session demands that needed to be be met by the legislature to gain his signature on the tax bill. House GOP Speaker Kurt Daudt said his caucus wouldn’t support many of the governor’s demands for increased funding for programs, light rail and more.

The governor has said he wants to meet with legislative leaders today, presumably to talk about what is doable in a special session. At stake is the tax bill, a bonding bill and many transportation projects. A long-term transportation funding plan could still emerge, but it’s unlikely.

MREA is still hopeful the Governor and Speaker can sort out these issues soon.