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St. Paul, Minn. (AP)

Minn. Senate tax bill has tax breaks for business

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The Minnesota Senate will debate a tax bill that Republicans say helps close a $5 billion budget shortfall without state tax increases but that Democrats say will end up forcing local property tax increases.

The Senate is slated to continue a debate Tuesday on its omnibus tax bill. The bill cuts spending by $580 million, and extends property tax relief to businesses by eliminating the statewide property tax on businesses entirely over the next dozen years. Republicans say that will make Minnesota a better place to do business.

The bill also reduces aid to local governments and trims the size of a property tax refund for renters. Gov. Mark Dayton's Department of Revenue says those and other provisions will result in higher property taxes for homeowners.

(Copyright 2011 by The Associated Press. All Rights Reserved.)