Capitol View: February 21, 2013 Archive

Revenue Department pushes back against criticism of Dayton tax plan

Posted at 1:55 PM on February 21, 2013 by Tom Scheck (2 Comments)
Filed under: MN Legislature, Mark Dayton

The Minnesota Department of Revenue released a study today saying Gov. Dayton's tax plan would be fairer to low and middle income Minnesotans than the current system.

"The bottom line is that the fourth tier tax increase and the homeowner property tax rebates are both very progressive and large enough to more than offset the impact of the more regressive portions of the full proposal," the department said in the bulletin.

The department's findings are based on the so-called SUITS Index that measures for progressivity.

Dayton's tax plan raises income taxed on top earners, increases the cigarette tax and changes the sales tax. His sales tax plan would reduce the overall rate from 6.875 percent to 5.5 percent but would expand the tax to business-to-business services, consumer services and clothing items that cost more than $100. Dayton also wants to provide a $500 tax rebate to each homeowner in the state.

Dayton's plan has been criticized by business groups who say it's unfair. Some contend his plan to tax clothing and consumer services would make lower and middle income Minnesotans pay more.

Republicans tried to highlight those concerns during a brief debate on Senate floor today. They forced a vote on a routine procedural move on Dayton's tax plan and worked to link Democratic votes for the procedural move as an endorsement of the plan.

"Many of us have said that we do not support this," Sen. Julianne Ortman, R-Chanhassen, said. "So this is our opportunity to say no. We don't want this bill in the Senate Tax Committee."

Democrats complained that the Republican effort would limit debate on Dayton's plan.

"I would urge that we do not exclude the public from this debate," Sen. Rod Skoe, DFL-Clearbrook said. "The committee hearing process is the opportunity for the public to weigh in on these important issues, so I would ask that this bill has the opportunity to go to committee."

Democrats were successful in sending the bill to the Taxes Committee. Skoe says he intends to hold hearings on Dayton's plan soon.

The discussion over the state budget is likely to change next week. That's because state finance officials are scheduled to release the next budget forecast. Gov. Dayton and lawmakers will use those figures to make final decisions on the next two-year budget.

Bills would require 10 percent of state's electricity to come from sun

Posted at 2:45 PM on February 21, 2013 by Jon Collins (0 Comments)
Filed under: MN Legislature

Lawmakers in both houses of the state Legislature introduced bills this week to require 10 percent of the state's electricity to be produced by solar energy by 2030.

The Senate author, Sen. Chris Eaton of Brooklyn Center said on Thursday's Policast that establishing the standard would send a "strong, predictable long-term market signal to attract investment" in the state's solar energy industry.

"It's crucial that we start dealing with our carbon footprint here," Eaton said. "Whether you believe the weather changes are caused by it or not, it's becoming very clear that we need to do something different."

Advocates say the the proposal could create 2,000 jobs in solar installation, manufacturing and training in the first year, according to modeling from the National Renewable Energy Laboratory.

But solar advocates admit the energy standard would also come with an estimated 1 percent per year rate hike.

The 10 percent solar standard is also opposed by Xcel Energy. In a statement emailed to MPR, Xcel Energy Regional Vice President Laura McCarten said the company doesn't believe that the mandate is appropriate.

"Solar energy is projected to remain expensive relative to other clean energy resources such as wind power and conservation programs," McCarten said. "That is why we support a more moderate approach for advancing solar energy, one that balances the focus on solar with the other, more cost-effective clean energy resources available."

Utilities in the state are on track to meet a requirement to produce 25 percent of total electricity through renewable energy sources like wind, hydrogen and solar by the year 2025.

Policast is a daily roundup of Minnesota political news. The entire interview with Sen. Chris Eaton can be heard in the Thursday, Feb. 21 episode.

Bill extends alcohol sales to Gopher hockey and football games

Posted at 4:48 PM on February 21, 2013 by Tom Scheck (0 Comments)
Filed under: MN Legislature

A member of the Minnesota House says he wants the University of Minnesota to sell alcohol at college hockey and basketball games.

DFL Rep. Dan Schoen, DFL-Cottage Grove, said his bill would extend alcohol sales to Williams and Mariucci arenas. He said the experience at football games at TCF Bank stadium has shown that beer and wine can be sold responsibly.

Schoen said all adults at Gopher hockey and basketball games should be able to buy beer, not just those who sit in luxury suites.

"If it's working up in the suites, why doesn't it work for the average fan to come in and have a beer?," Schoen said. "I'm not telling them how to run their policy. It's just saying if you're going to do it there, do it the same way. If they don't want to sell then don't sell it anywhere."

The Legislature passed a bill last year that allowed alcohol sales at the Gopher football stadium. The U of M made $900,000 in liquor sales from seven home games last season. The profits went to the university's athletic department.