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Below is a snapshot of key features of Minnesota's tax system. (Scroll Down)
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State & Local Revenue (FY08)
- General Revenue, Own-Source (GROS): $35.5 billion
- General Revenue as a Share of Income: 16.1%
- Tax Revenue: $24.7 billion
- Tax Revenue as Share of income: 11.2%
- Personal Income Tax (Share of Tax Revenue): 31.5% (8 out of 51)
- Corporate Income Tax (Share of Tax Revenue): 4.2% (20 out of 51)
- Sales & Excise Tax (Share of Tax Revenue): 31.2% (32 out of 51)
- Property Tax (Share of Tax Revenue): 26.8% (34 out of 51)
- Other Taxes (Share of Tax Revenue): 4.2% (16 out of 51)
Personal Income Tax Features (2011)
- Range of Tax Rates: 5.35% - 7.85%
- Standard Deduction: $5,800 ($11,600 for Married Couples)
- Personal Exemption: $3,700
- Dependent Exemption: $3,700
- Earned Income Tax Credit (EITC): Varies Based on Income, Average 33% Refundable
Corporate Income Tax Features (2011)
- Range of Tax Rates: 9.80%
- Income Level at Which Top Rate Applies: All
- Combined Reporting: Yes
- Apportionment Factor (Payroll): 5%
- Apportionment Factor (Property): 5%
- Apportionment Factor (Sales): 90%
- Apportionment Note: SSF phasing-in; will be fully implemented in 2014
Sales Tax Features (2011)
- State Sales Tax Rate: 6.875%
- Average Local Sales Tax Rate: 0.325%
- Average Combined State & Local Sales Tax Rate: 7.20%
- State Sales Tax Treatment of Groceries: Exempt
- Local Sales Tax Treatment of Groceries: Exempt
- Number of Services Taxed: 66 out of 168 surveyed
- Streamlined Sales Tax Membership: Full
- State sales tax rate scheduled to decline to 6.5% in 2034
Property Tax Features (2011)
- Provides a circuit breaker for homeowners and renters of all ages
- Provides a means-tested homestead credit.
- Utilizes a graduated assessment ratio.
Other Tax & Revenue Features (2011)
- Gasoline Tax Rate (per gallon): $0.272
- Diesel Tax Rate (per gallon): $0.276
- Cigarette Tax Rate (per pack): $1.586
- Estate or Inheritance Tax: Yes
- Net Lottery Sales Per Capita: $77
Tax Policy Oversight
- Tax Expenditure Report: Yes
- Tax Incidence Analysis Capability: Multiple taxes
Last Updated August 25, 2011
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