On Thursday, Senator Andrew Lang (R-Olivia) joined his colleagues in voting to pass a comprehensive tax bill that cuts income tax rates for most Minnesotans. The legislation also brings Minnesota’s tax code into conformity with the federal tax overhaul passed by Congress last year and protects nearly all Minnesotans from a tax increase.

“Last fall, Congress passed an historic tax overhaul that put more money back into family wallets and propelled the economy. The tax bill we passed this afternoon adheres to those benefits by bringing Minnesota tax laws into compliance with the changes at the federal level,” said Senator Lang. “The plan protects the wages of nearly every Minnesotan, ensures simplicity when filing your taxes, and actually cuts the income tax rate for millions of Minnesota families.”

The legislation drops the lowest income tax rate by a quarter of a percent and allows Minnesotans to keep popular tax deductions for mortgage and home equity loan interest, property taxes, and charitable donations. In total, nearly 2.1 million Minnesota households will benefit from these changes, with an estimated 82 percent of Minnesota residents seeing an income tax reduction.

In addition to an income tax rate reduction, the legislation maintains the state personal and dependent exemption of $4,150 and the state standard deduction of $13,000, extends the $5 million angel investor tax credit, fully conforms to Section 179 of the Internal Revenue Service (IRS) tax code, and uses the FAGI model to separate the state tax code from the federal tax code. Finally, the legislation includes an automatic reduction of individual income tax rates when a significant projected budget surplus exists.

“Our priority is making sure Minnesotans keep more of their own money,” continued Senator Lang. “We want to make sure Minnesota is a prosperous place to live, operate a business, and raise a family. We have more work to do, but this bill is a great first step.”

Senator Andrew Lang, of Olivia, is in his first term representing District 17, which includes communities in Chippewa, Kandiyohi, Renville, and Swift counties.