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Bemidji sales tax extension approved by Legislature

ST. PAUL (AP) _ A stripped-down version of the tax bill vetoed by Gov. Tim Pawlenty last year is heading back his way. The DFL-controlled Senate approved the bill on a 63-2 vote before the DFL-controlled House passed it 132-1 on Thursday. Senate ...

ST. PAUL (AP) _ A stripped-down version of the tax bill vetoed by Gov. Tim Pawlenty last year is heading back his way.

The DFL-controlled Senate approved the bill on a 63-2 vote before the DFL-controlled House passed it 132-1 on Thursday.

Senate Taxes Committee Chairman Tom Bakk said the bill could land on the Republican governor's desk later Thursday.

Approval of Bemidji's half-cent sales tax extension to help build a regional events center is in in the bil, while Bakk says he removed everything Pawlenty didn't like -- including tax help for a proposed Mall of America expansion, a requirement to factor inflation into budget forecasts and tighter taxation of companies with foreign operations.

The bill will match up Minnesota's tax code with the federal code to make filing easier for taxpayers.

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It also includes property tax breaks for disabled military veterans and an income tax exemption on military pay for National Guard and Reserves troops.

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