Governor vetoes new tax bill

Gov. Dayton refused to sign unless the legislators agreed to specific demands.

Ryan Faircloth

Gov. Mark Dayton vetoed a nearly $260 million tax relief package at midnight Monday due to a one-word error in the bill.
 
The error would have cost the state about $100 million over the next three years.
 
The $259 million bill provided tax credits for student loan debtors, a state income tax exemption for veterans’ retiree benefits and child care tax credit, among others.
 
Dayton let the bill expire via a pocket veto at midnight Tuesday and now wants legislators to hold a special session to reassess the bill along with several other items Dayton would like addressed.
 
“My message to legislators today is, ‘Come back and finish your work,’” Dayton said at a Tuesday morning news conference. “Correct the $101 million error in the tax bill, and restore the tax exemption for the state high school league.” 
 
Dayton said if legislators hadn’t passed the tax bill at the last minute, there wouldn’t have been an error. 
 
“I’m not responsible for the error,” he said, adding that the tax bill wouldn’t have been “riddled with factual errors” if the House caucus released a bonding bill on time.
 
Dayton said he met with caucus leaders Tuesday afternoon to negotiate a special session.