Republicans scale back tax bill

House and Senate Republicans have come up with a new, less-expensive tax bill that they're hoping DFL Gov. Mark Dayton will sign.

Dayton vetoed their earlier tax bill over concerns about how it would impact state finances, particularly the ongoing expenses in future years known as "tails."

The new version still targets businesses, with an upfront sales tax exemption for equipment purchases, as well as increased tax credits for angel investment in small businesses and research and development. The new bill includes just a one-year freeze on business property taxes.

Republican Rep. Greg Davids, chair of the House Tax Committee, said Dayton hasn't agreed to the new bill, but it addresses his concerns.

"The tails are down to $73 [million], and in the context of a $35 billion budget, that is a rounding error," Davids said. "There is no reason that the governor can use comments regarding tails to not support this bill."

Davids said the House will vote on the new tax bill Wednesday afternoon, and assuming it passes, it will then go to the Senate.