The DFL-controlled Senate passed its tax bill on Friday (March 30), one with a number of local provisions.
by T.W. Budig
ECM capitol reporter
The DFL-controlled Senate passed its tax bill on Friday (March 30), one with a number of local provisions.
A sales tax exemption on construction supplies for the Thomson West expansion in Eagan is found in the bill.
The technology company provides software tools to more than 20 million users in the fields of law, tax accounting, financial services, scientific research and health care, according to a company release.
Thomson West must prove it created 2,000 additional jobs to get the tax break money.
The City of Eagan is permitted to establish a tax incremental financing zone for the project under the tax bill.
Anoka, Dakota counties addressed
The counties of Anoka and Dakota are allowed to impose a mortgage registry and real estate deed tax - slating the dollars to environmental response funds - under the Senate tax bill.
In testimony in Senate committee, Anoka County officials testified the county could have collected $678,000 last year had the tax provision been in place.
Dakota County estimates it could have collected $854,000.
In one southern metro provision, the City of Bloomington is permitted to extend the life of a tax increment finance district for the Mall of America Phase II project.
"The Mall of America will be a really good thing for the state," said Sen. Tom Bakk, DFL-Cook, Senate Tax Committee chair, on the Senate floor.
Bloomington is allowed to increase local sales taxes to raise revenue for the project.
JOBZ program killed momentarily
The most dramatic portion of the Senate tax bill debate was when Sen. Julie Rosen, R-Fairmont, successfully struck out a provision in the bill killing Gov. Tim Pawlenty's Job Opportunity Building Zone (JOBZ) program.
But then, on a re-referral requested by Sen. Leo Foley, DFL-Coon Rapids, Rosen's amendment failed when Foley and three other DFLers switched their votes.
"No intrigue," said Foley of his change of mind.
He was simply convinced to vote against JOBZ by another senator, he explained.
Fiscal conservative Sen. Ray Vandeveer, R-Forest Lake, didn't vote on JOBZ though his vote light flickered green - yes - on the reconsideration before going dark.
Bakk argued JOBZ had failed to achieve its goal of bringing business to Greater Minnesota.
"I'm the kind of guy who can admit when I make a mistake," said Bakk of his past support.
He cited JOBZ programs in North Branch and Wyoming in the north metro as example of sites in areas not necessarily considered economically depressed.
Rally around JOBZ
But Republicans and DFLers alike rallied around JOBZ.
"It's the only tool we absolutely have," said Senate Minority Leader Dave Senjem, R-Rochester. "If we can't have it, we've really got nothing," he said.
Sen. Betsy Wergin, R-Princeton, stood on the Senate floor to ask Bakk to rethink his opposition to JOBZ.
According to a study by the Center for Rural Policy and Development, the state's JOBZ program - one of Pawlenty's major Greater Minnesota initiatives - has created more jobs in rural Minnesota than expected and at higher wages.
"In fact we should expand the program as far as I'm concerned," said Pawlenty on his weekly radio show.
In a Center analysis of 131 business subsidy agreements in 2004, the businesses in total pledged to create 1,985 new full-time jobs averaging $12.37 an hour.
But over the two following years, in total these businesses created 2,601 full-time jobs averaging $14.86 per hour.
Center for Rural Policy and Development President Jack Geller believes it's "reasonable" to say that the majority of businesses in the JOBZ program are fulfilling the obligations of their agreements.
Chisago County, according to the Center, has 236 JOBZ-created job and Morrison County 49.
Tax exemptions
JOBZ provides tax exemptions for businesses who promise to create jobs and sink capital into Greater Minnesota.
Local lawmakers voting in support of JOBZ were: Erickson Ropes, Gerlach, Johnson, Jungbauer, Koch, Koering, Limmer, Olseen, Pariseau, Robling, and Wergin.
Senators Bonoff, Foley, Prettner Solon, and Rest switched from "Yes" to "No' on the reconsideration.
Sen. Kathy Sheran, DFL-Mankato, voted against the amendment when it won and for it when it lost.
Vandeveer was off the board, as noted.
The tax bill passed the Senate on a 38-28 vote.
Local lawmakers voting in favor: Betzold, Carlson, Chaudhary, Doll, Erickson Ropes, Foley, Larson, Metzen, Olseen, and Rummel.
Voting against: Gerlach, Johnson, Jungbauer, Koch, Koering, Limmer, Pariseau, Robling, Vandeveer, and Wergin.
ECM capitol reporter
The DFL-controlled Senate passed its tax bill on Friday (March 30), one with a number of local provisions.
A sales tax exemption on construction supplies for the Thomson West expansion in Eagan is found in the bill.
The technology company provides software tools to more than 20 million users in the fields of law, tax accounting, financial services, scientific research and health care, according to a company release.
Thomson West must prove it created 2,000 additional jobs to get the tax break money.
The City of Eagan is permitted to establish a tax incremental financing zone for the project under the tax bill.
Anoka, Dakota counties addressed
The counties of Anoka and Dakota are allowed to impose a mortgage registry and real estate deed tax - slating the dollars to environmental response funds - under the Senate tax bill.
In testimony in Senate committee, Anoka County officials testified the county could have collected $678,000 last year had the tax provision been in place.
Dakota County estimates it could have collected $854,000.
In one southern metro provision, the City of Bloomington is permitted to extend the life of a tax increment finance district for the Mall of America Phase II project.
"The Mall of America will be a really good thing for the state," said Sen. Tom Bakk, DFL-Cook, Senate Tax Committee chair, on the Senate floor.
Bloomington is allowed to increase local sales taxes to raise revenue for the project.
JOBZ program killed momentarily
The most dramatic portion of the Senate tax bill debate was when Sen. Julie Rosen, R-Fairmont, successfully struck out a provision in the bill killing Gov. Tim Pawlenty's Job Opportunity Building Zone (JOBZ) program.
But then, on a re-referral requested by Sen. Leo Foley, DFL-Coon Rapids, Rosen's amendment failed when Foley and three other DFLers switched their votes.
"No intrigue," said Foley of his change of mind.
He was simply convinced to vote against JOBZ by another senator, he explained.
Fiscal conservative Sen. Ray Vandeveer, R-Forest Lake, didn't vote on JOBZ though his vote light flickered green - yes - on the reconsideration before going dark.
Bakk argued JOBZ had failed to achieve its goal of bringing business to Greater Minnesota.
"I'm the kind of guy who can admit when I make a mistake," said Bakk of his past support.
He cited JOBZ programs in North Branch and Wyoming in the north metro as example of sites in areas not necessarily considered economically depressed.
Rally around JOBZ
But Republicans and DFLers alike rallied around JOBZ.
"It's the only tool we absolutely have," said Senate Minority Leader Dave Senjem, R-Rochester. "If we can't have it, we've really got nothing," he said.
Sen. Betsy Wergin, R-Princeton, stood on the Senate floor to ask Bakk to rethink his opposition to JOBZ.
According to a study by the Center for Rural Policy and Development, the state's JOBZ program - one of Pawlenty's major Greater Minnesota initiatives - has created more jobs in rural Minnesota than expected and at higher wages.
"In fact we should expand the program as far as I'm concerned," said Pawlenty on his weekly radio show.
In a Center analysis of 131 business subsidy agreements in 2004, the businesses in total pledged to create 1,985 new full-time jobs averaging $12.37 an hour.
But over the two following years, in total these businesses created 2,601 full-time jobs averaging $14.86 per hour.
Center for Rural Policy and Development President Jack Geller believes it's "reasonable" to say that the majority of businesses in the JOBZ program are fulfilling the obligations of their agreements.
Chisago County, according to the Center, has 236 JOBZ-created job and Morrison County 49.
Tax exemptions
JOBZ provides tax exemptions for businesses who promise to create jobs and sink capital into Greater Minnesota.
Local lawmakers voting in support of JOBZ were: Erickson Ropes, Gerlach, Johnson, Jungbauer, Koch, Koering, Limmer, Olseen, Pariseau, Robling, and Wergin.
Senators Bonoff, Foley, Prettner Solon, and Rest switched from "Yes" to "No' on the reconsideration.
Sen. Kathy Sheran, DFL-Mankato, voted against the amendment when it won and for it when it lost.
Vandeveer was off the board, as noted.
The tax bill passed the Senate on a 38-28 vote.
Local lawmakers voting in favor: Betzold, Carlson, Chaudhary, Doll, Erickson Ropes, Foley, Larson, Metzen, Olseen, and Rummel.
Voting against: Gerlach, Johnson, Jungbauer, Koch, Koering, Limmer, Pariseau, Robling, Vandeveer, and Wergin.
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