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HF 1493 was laid over for possible inclusion in the Omnibus Tax Bill.
(Published Apr 5, 2013)
A large tax bill that includes a provision to remove the tax exempt status of municipal bonds was heard in the House Tax Committee on Wednesday, April 3. The bill, HF 1493, is authored by the Chair of the Tax Committee, Ann Lenczewski, DFL-Bloomington.
The League of Minnesota Cities, the Association of Minnesota Counties, and the Minnesota School Boards Association all oppose the removal of the tax exempt status. Local governments can issue bonds at lower interest rates because bond holders are willing to receive a lower interest rate in exchange for the tax benefit. Without the tax benefits, interest rates will increase to be competitive with other bonds. The increase in bond payments will increase the cost of construction projects funded by the bonds, and that cost will flow to local taxpayers.
The League testified against this part of the legislation. HF 1493 was laid over for possible inclusion in the Omnibus Tax Bill. There is no Senate companion.
Questions? Contact Gary Carlson at email@example.com or at (651) 281-1255.
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