Minn. Legislature Passes Tax Bill, Holds Local Aid

ST. PAUL, Minn. (AP) — The Minnesota Legislature has passed a package of changes to state tax law that maintains state aid to cities and counties at levels from last year.

The House passed the bill late Tuesday and the Senate early Wednesday, which sends the bill to Democratic Gov. Mark Dayton. The bill passed both chambers on party-line votes with Republicans in favor and Democrats opposed.

House Republicans had previously voted to eliminate state aid to Minneapolis, St. Paul and Duluth but gave up that plan as part of a budget compromise with Dayton aimed at ending the state government shutdown.

The tax bill also includes the provision to let the state borrow against future tobacco settlement payments which a key piece of new revenue that allowed the compromise between Dayton and Republicans.

(© Copyright 2011 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

  • Alfred

    Local Government Aid (LAG) is simply the transfer of money from responsible counties to irresponsible counties.

    If is fraught with corruption and deal making and should be phased out.

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