Signed by Governor Tim Pawlenty

Vote Smart's Synopsis:

Vote to pass a bill that revises the Minnesota tax code. Matches Minnesota's tax code with federal tax code, expands tax breaks and creates tax-incremented districts.

Highlights:

- Prohibits the state from taxing the income of members of the military, including the Minnesota National Guard, at a higher rate than federal tax code [Art. 3, Sec. 3 (11-12)]. - Provides a homestead property tax exemption of up to $300,000 for military veterans with a disability rating of 100 percent and up to $150,000 for veterans with a disability rating of at least 70 percent but less than 100 percent (Art. 2, Sec. 15, Subd. 34). - Expands the 4d property tax break classification to include any developments where at least 20 percent of rental units are classified as affordable housing and that receive financing from federal, state or local government (Art. 2, Sec. 11, Subd. 1). - Eases restrictions on creating tax-increment-financing districts, which allow local governments to incur debt to be repaid by future property taxes, the revenue from which is expected to increase as a result of the improvement project (Art. 9, Sec. 2-7).

Full Bill Text