In Minnesota the last two months of 2013 proved to provide income for the government than for individual Minnesotans. With the state taking in 3.3 Billion dollars in November and December, an increase of $172 Million dollars more than projection. Income taxes have increased and the sales tax provided more revenue than expected.
H.F. No. 677 - Omnibus Tax Bill in which many new taxes are retroactive to January 1, 2013 passed on May 23, 2013. With the increased tax revenue Minnesota once again will be set up for a budget surplus. Or will we?
Income earners can expect a new tax bracket being created for those making over $250k with a tax of 9.8 percent. The alternative minimum tax rate also goes up to 6.75 percent from 6.4.
As for sales tax, the Minnesota Legislature has seen fit to create a digital tax on all digital products from music to digital books.
Welcome to 2014... what is leaving your wallet?
For more information on H.F. No. 677 please connect to the following link.