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Minnesota tax cut bill could mean more money for East Grand Forks

A Minnesota tax cut bill that's expected to be proposed once the legislative session kicks off Tuesday could have a major impact on East Grand Forks.

A Minnesota tax cut bill that's expected to be proposed once the legislative session kicks off Tuesday could have a major impact on East Grand Forks.

The new bill, which is expected to be follow much of the proposed 2016 Minnesota tax legislation, would include increased state aid to local governments.

East Grand Forks City Administrator David Murphy said if the 2016 bill had passed, the city would have received about $100,000 from the state for its Local Government Aid fund.

"This makes up about a third of our overall revenue, so we're really hoping the state comes through for us," Murphy said.

The 2016 Minnesota tax legislation also would have cut farmland property taxes and reduced state property taxes.

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Nearly 90 percent of legislators backed the measure, but it never became law because Minnesota Gov. Mark Dayton did not sign it because of a wording mistake.

That bill, however, will be used as the framework for a new one. Dayton told Forum News Service this week that he will send legislators his tax proposals during the first week of the session, which convenes Tuesday.

Murphy said an increase to the city's Local Government Aid is one of East Grand Forks' top three priorities heading into the legislative session.

"We were supposed to get more LGA money than we did because the bill did not get passed," Murphy said.

The 2016 tax bill would have increased Local Government Aid from $519 million over two years to $539 million.

Forum News Service reporter Don Davis contributed to this report.

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