A massive property tax bill that was making its way toward passage of a House committee this week offers big savings to farmers, businesses, industrialists and cabin owners, while also pushing bold policies like giving local voters a chance to undue a levy tax increase with a "reverse referendum."

Rep. Steve Drazkowski, R-Mazeppa, who is chairman of the Property Tax and Local Government Finance Division, is also known as a leader of the conservative wing of the Republican caucus.

The biggest item in the proposal is a major exemption and eventual phase-out of the commercial and industrial statewide property levy, which is a tax on businesses but also seasonal cabins. The measure would exempt the first $500,000 for commercial and industrial properties and the first $200,000 of seasonal cabins. It would cost state coffers $433 million during the biennium. The eventual phase-out would drive costs of the tax cut higher in the future, with a price tag of $917 million in the second biennium that would continue to grow.

The bill also tries to address the high cost of school bond levies for agriculture interests by providing a refundable income tax credit for farmers equal to 50 percent of the property tax they pay attributable to school debt levies.

The bill would save some money by reducing local government aid to just three cities, Minneapolis, St. Paul and Duluth, by a total of $85 million.

The total cost of the bill is $363 million over the biennium.

The House Taxes Committee is expected to incorporate these tax changes into its major bill, which Republicans say will offer $2 billion in tax cuts, in the coming days.