Minnesota Governor Dayton’s Budget Proposal of 2013

Print PDFShare
January 30, 2013

On January 22, 2013, Minnesota Governor Mark Dayton released his proposal to address the $1.1 billion budget deficit in Minnesota and to increase spending initiatives. His proposals have significant tax implications, raising billions in new taxes. The following is an overview of certain key provisions relating to income tax; sales and use tax; corporate tax; property tax; miscellaneous tax; and state and local aids.

Click on each underlined provision below for detailed information.

Income Tax Provisions

  •  New Fourth Tier of Income Bracket
  • Reduction in Number of Days for Part-Year Residence Test When Maintaining a Minnesota Abode

Sales and Use Tax Provisions

  • Sales and Use Tax Reform
  • Sales and Use Tax Rate Reduction
  • Sales Tax Upfront Capital Equipment Exemption
  • Seven-County Metro Area Tax

Corporate Tax Provisions

  • Corporate Tax Reform
  • Corporate Tax Rate Reduction

Property Tax Provisions

  • State Business Levy Reduction
  • Property Tax Rebate

Miscellaneous Tax Provisions

  • Increase Cigarette and Tobacco Products Excise Tax
  • Motor Vehicle Rental Tax - 2.85% Increase

Provisions on State and Local Aids

  • Local Government Aid Increase / New Formula
  • County Program Aid Increase
  • Levy Change Interactions - Income Tax and Property Tax Refund

What This Means For You

The Governor believes that his budget proposal will provide a more fair and balanced tax system and it will be introduced as a bill to be debated by the Minnesota Legislature.

Our Tax and Business Law attorneys will be following the proposed legislation closely, and advise businesses and individuals to assess their tax situations and plan accordingly. 

We would be happy to discuss what the proposed tax rates mean for you and your business today and in the future. If you have any questions, please contact a member of our Tax or Business Law Section.

To view this alert in its entirety, please click here.

This publication is circulated to bring useful and timely information to our clients and colleagues. The publication is for general information purposes only and is not legal advice. You should not rely on any information or views contained in the publication in evaluating any specific legal issues you may have. Please consult your Briggs and Morgan attorney for specific legal advice. Any U.S. Federal tax advice contained in this communication (whether distributed by mail, email or fax) is not intended or written to be used, and it cannot be used by any person for the purpose of avoiding U.S. Federal tax penalties or for the purpose of promoting, marketing or recommending any entity, investment plan or other transaction. (The foregoing legend has been affixed pursuant to U.S. Treasury Regulations governing tax practice.)