The Capitol Note: Senate’s tax bill would cut $434 million

1.) Following the harsh public criticisms of Gov. Mark Dayton on Tuesday, reports MPR, the Minnesota Senate presented its tax bill Wednesday. Senate Taxes Committee Chair Rod Skoe’s bill comes in at $434 million, or about $70 million less than the $503 million in tax cuts passed by the House earlier. One source of the discrepancy is that the House went fully retroactive on its business-to-business sales tax cuts, while the Senate did not opt to go retroactive on the two taxes that took effect last year.

Other differences, according to MPR’s Tim Pugmire:  “The Senate bill includes a repeal of the gift tax, an estate tax adjustment and an angel investment tax credit. However, it does not include a child care credit, one of Dayton’s priorities. The biggest difference between the House and Senate bills is that the Senate’s measure uses $150 million of the surplus to increase the state’s budget reserve account.” During a press availability Wednesday, House leaders refused to speculate on whether the House would accept the Senate bill or take it to conference committee.

2.) There is still hope for a comprehensive transportation funding package this session, at least according to the behavior of the House Transportation Finance Committee, which is expected to mark-up and vote on just such a bill during its 10:00 a.m. hearing this morning. Chair Rep. Frank Hornstein, DFL-Minneapolis, has remained upbeat about the prospects of passing that legislation, which combines a metro area sales tax with a tax on gasoline sales at the wholesale level. Hornstein’s optimism comes despite the fact that both the House and Senate have carved-out cash spending for transportation needs in their budget plans instead of dedicated tax revenues. House Democrats would spend $50 million on roads and bridges projects, while the Senate DFL’s proposal includes an even larger infusion of $200 million toward transportation needs.

3.) Sen. Roger Reinert, DFL-Duluth, conceded Wednesday that he lacks the votes to pass full Sunday liquor sales through that chamber’s Commerce Committee, the Star Tribune reports. Reinert told the paper:  “I do want full repeal. But I’m also practical and realistic, and this is what we could do.” The  2014 session, which has seen the most credible assault so far on the age-old Sunday sales ban, remains likely to yield some modification of Sunday sales laws – including, notably, allowing breweries to sell 64-ounce growlers and open their taprooms on Sunday even without food sales.