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Minn. Legislature Sends Dayton Property Tax Freeze

ST. PAUL, Minn. (AP) — Lawmakers sent Gov. Mark Dayton a bill on Thursday that would freeze state property taxes for Minnesota businesses, a top priority for Republicans who control the Legislature but a plan that's likely to meet the Democratic governor's veto.

The vote came during a day of fits and starts at the Capitol, as lawmakers attempt to wrap up their session amid acrimony between Dayton and the GOP, and the renewed likelihood of House and Senate votes early next week on the nearly $1 billion Vikings stadium proposal.

Expected votes Thursday in the Senate and House on their separate versions of a $500 million package of building projects via construction bonds did not materialize. Votes won't happen until Monday at the earliest.

Also Thursday, Dayton acted on several high-profile bills. He vetoed a bill sought by Republicans and supported by some Democratic backing that would have let schools lay off teachers based on their job performance, rather than simply on seniority. Dayton said it showed prejudice against public schoolteachers and would have replaced the most prevalent system of determining teacher layoffs with what he called "vaguely formulated ideas."

Under current law, school districts can only factor seniority in layoff decisions unless individual districts negotiate their own arrangements. The bill's chief House sponsor, Rep. Branden Petersen, criticized Dayton for what he characterized as siding with teacher unions over students.

Dayton signed a game and fish bill that included a hike in the cost of hunting and fishing licenses, with the money going to bolster wildlife resource management. Adult resident fishing fees will go up from $17 to $22 a season, and from $25 to $35 for a married couple. A deer hunting license for residents will rise from $26 to $30. Other fees will rise by similar amounts.

The fee hikes were sought by a coalition of outdoors groups and supported by Republicans and Democrats in the Legislature. The game and fish bill also establishes an annual wolf hunt in Minnesota, subject to a state-set quota.

The Senate tried and failed to override a previous Dayton veto, of the bill that would have legalized more powerful varieties of fireworks in the state.

The tax bill now on its way to Dayton's desk passed the Senate on Thursday by a vote of 41-25, with a few Democrats joining Republicans to support it. It includes $52 million in tax relief this year, mostly by freezing an annual, automatic increase in the property tax the state directly levies on businesses. The cost of the tax relief rises to $139 million in the two years after that.

"This is a bill that would provide immediate relief to our small business owners and property taxpayers that are struggling through our economic recession," said Sen. Julianne Ortman, R-Chanhassen, who wrote the bill.

The legislation also includes tax credits for research and development projects, and an investor credit meant to foster investment in startup companies. Democratic critics said there's no guarantee it would create jobs, and echoed past criticism by Dayton that any property tax relief should be shared equally by everyone who pays property taxes.

"More and more the property tax burden has been going on homeowners, renters and farmers," said Sen. John Marty, DFL-Roseville. "And here we're giving all the relief to businesses."

Dayton has not directly said he'd veto the tax bill, but in addition to requesting it benefit a wider group of taxpayers, he has also criticized it for potentially creating state budget shortfalls in future years. Republicans countered that if businesses are less fettered by taxes, they would increase economic activity and generate new tax revenue that would offset such shortfalls.

With Dayton either shooting down or likely to squelch major Republican priorities, some including House Speaker Kurt Zellers said it could affect how individual lawmakers vote on Dayton's much-sought Vikings stadium bill.

"If you either veto or disregard people's bills, it is going to be hard for them to say, 'Oh I'll support your bill, governor, when you didn't support my bill,'" Zellers said in an interview on KFAN Radio.

(© Copyright 2012 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

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