Signed by Governor Mark Dayton

Vote Smart's Synopsis:

Vote to adopt a conference report that amends state taxes.

Highlights:

• Restructures the income tax rate as follows for married individuals filing jointly for tax years beginning after December 31, 2012 (Art. 6, Sec. 10):
•  Existing law:
• 5.35 percent on taxable income on the first $25,680;
• 7.05 percent on taxable income more than $25,680 but not over $102,030; and
• 7.85 percent on taxable income more than $102,030.
•  New law:
• 5.35 percent on taxable income on the first $35,480;
• 7.05 percent on taxable income more than $35,480 but not over $140,960; 
• 7.85 percent on taxable income more than $140,960 but not over $250,000; and 
• 9.85 percent on taxable income more than $250,000. 

• Restructures the income tax rate as follows for an individual for tax years beginning after December 31, 2012 (Art. 6, Sec. 10):
•  Existing law:
• 5.35 percent on taxable income on the first $17,570;
• 7.05 percent on taxable income more than $17,570 but not over $57,710; and
• 7.85 percent on taxable income more than $57,710.
•  New law:
• 5.35 percent on taxable income on the first $24,270;
• 7.05 percent on taxable income more than $24,270 but not over $79,730; 
• 7.85 percent on taxable income more than $79,730 but not over $150,000; and 
• 9.85 percent on taxable income more than $150,000.

• Restructures the corporate franchise tax amount as follows for tax years beginning after December 31, 2012 as follows (Art. 6, Sec. 25):
• Existing law:
• $0 if the sum of property, payrolls, and sales is less than $500,000;
• $100 if the sum of property, payrolls, and sales is between $500,000 and $999,999;
• $300 if the sum of property, payrolls, and sales is between $1 million and $4.99 million;
• $1,000 if the sum of property, payrolls, and sales is between $5 million and $9.99 million;
• $2,000 if the sum of property, payrolls, and sales is between $10 million and $19.99 million; and
• $5,000 if the sum of property, payrolls, and sales is more than $20 million.
•  New law:
• $0 if the sum of property, payrolls, and sales is less than $930,000;
• $190 if the sum of property, payrolls, and sales is between $930,000 and $1.869 million;
• $560 if the sum of property, payrolls, and sales is between $1.87 million and $9.339 million;
• $1,870 if the sum of property, payrolls, and sales is between $9.34 million and $18.679 million;
• $3,740 if the sum of property, payrolls, and sales is between $18.68 million and $37.359 million; and
• $9,340 if the sum of property, payrolls, and sales is more than $37.36 million.

• Specifies that for the 2015 fiscal year and each fiscal year thereafter, a school district’s general education aid equals the sum of the following (Art. 3, Sec. 4):
• General education revenue;
• Equity aid;
• Transition aid;
• Shared time aid;
• Referendum aid;
• Online learning aid; and
• Location equity aid.

• Increases county local government aid as follows (Art. 2, Sec. 19):
• Existing law:
• $80.80 million, for aids payable to counties in 2014 and thereafter.
• New law:
• $100.80 million, for aids payable to counties in 2014 and thereafter.

• Increases city local government aid as follows (Art. 2, Sec. 18):
• Existing law:
• $426.44 million, for aids payable to cities in 2014.
• New law:
• $507.60 million, for aids payable to cities in 2014;
• $509.10 million, for aids payable to cities in 2015; and
• $511.60 million, for aids payable to cities in 2016 and thereafter.

• Establishes town local government aid as follows (Art. 2, Sec. 20):
• Up to $10 million, for aids payable to towns in 2014; and
• Up to the amount certified to be paid in the previous year, for aids payable to towns in 2015 and thereafter.

• Increases the cigarette sales tax rate as follows (Art. 5, Sec. 10):
• From $0.024 to $0.142 per cigarette on cigarettes weighing up to 3 pounds per 1,000; and
• From $0.048 to $0.283 per cigarette on cigarettes weighing up to 3 pounds per 1,000.

• Requires a retailer making sales from outside the state to a destination within the state and not maintaining a place of business in the state to collect sales tax (Art. 8, Sec. 18).

• Specifies that capital equipment, used in the state for manufacturing, fabricating, mining, or refining tangible personal property to be sold at retail, is exempt from any taxes, whereas existing law required the collection of a tax and then a refund for the tax (Art. 8, Sec. 26).

• Exempts construction materials used for the public infrastructure related to the Destination Medical Center from being taxed, and authorizes the issuance of bonds for the purposes of implementing the Center (Art. 10, Sec. 2).

Full Bill Text

Vote Smart's Synopsis:

Vote to adopt a conference report that amends state taxes.

Highlights:

• Restructures the income tax rate as follows for married individuals filing jointly for tax years beginning after December 31, 2012 (Art. 6, Sec. 10):
•  Existing law:
• 5.35 percent on taxable income on the first $25,680;
• 7.05 percent on taxable income more than $25,680 but not over $102,030; and
• 7.85 percent on taxable income more than $102,030.
•  New law:
• 5.35 percent on taxable income on the first $35,480;
• 7.05 percent on taxable income more than $35,480 but not over $140,960; 
• 7.85 percent on taxable income more than $140,960 but not over $250,000; and 
• 9.85 percent on taxable income more than $250,000. 

• Restructures the income tax rate as follows for an individual for tax years beginning after December 31, 2012 (Art. 6, Sec. 10):
•  Existing law:
• 5.35 percent on taxable income on the first $17,570;
• 7.05 percent on taxable income more than $17,570 but not over $57,710; and
• 7.85 percent on taxable income more than $57,710.
•  New law:
• 5.35 percent on taxable income on the first $24,270;
• 7.05 percent on taxable income more than $24,270 but not over $79,730; 
• 7.85 percent on taxable income more than $79,730 but not over $150,000; and 
• 9.85 percent on taxable income more than $150,000.

• Restructures the corporate franchise tax amount as follows for tax years beginning after December 31, 2012 as follows (Art. 6, Sec. 25):
• Existing law:
• $0 if the sum of property, payrolls, and sales is less than $500,000;
• $100 if the sum of property, payrolls, and sales is between $500,000 and $999,999;
• $300 if the sum of property, payrolls, and sales is between $1 million and $4.99 million;
• $1,000 if the sum of property, payrolls, and sales is between $5 million and $9.99 million;
• $2,000 if the sum of property, payrolls, and sales is between $10 million and $19.99 million; and
• $5,000 if the sum of property, payrolls, and sales is more than $20 million.
•  New law:
• $0 if the sum of property, payrolls, and sales is less than $930,000;
• $190 if the sum of property, payrolls, and sales is between $930,000 and $1.869 million;
• $560 if the sum of property, payrolls, and sales is between $1.87 million and $9.339 million;
• $1,870 if the sum of property, payrolls, and sales is between $9.34 million and $18.679 million;
• $3,740 if the sum of property, payrolls, and sales is between $18.68 million and $37.359 million; and
• $9,340 if the sum of property, payrolls, and sales is more than $37.36 million.

• Specifies that for the 2015 fiscal year and each fiscal year thereafter, a school district’s general education aid equals the sum of the following (Art. 3, Sec. 4):
• General education revenue;
• Equity aid;
• Transition aid;
• Shared time aid;
• Referendum aid;
• Online learning aid; and
• Location equity aid.

• Increases county local government aid as follows (Art. 2, Sec. 19):
• Existing law:
• $80.80 million, for aids payable to counties in 2014 and thereafter.
• New law:
• $100.80 million, for aids payable to counties in 2014 and thereafter.

• Increases city local government aid as follows (Art. 2, Sec. 18):
• Existing law:
• $426.44 million, for aids payable to cities in 2014.
• New law:
• $507.60 million, for aids payable to cities in 2014;
• $509.10 million, for aids payable to cities in 2015; and
• $511.60 million, for aids payable to cities in 2016 and thereafter.

• Establishes town local government aid as follows (Art. 2, Sec. 20):
• Up to $10 million, for aids payable to towns in 2014; and
• Up to the amount certified to be paid in the previous year, for aids payable to towns in 2015 and thereafter.

• Increases the cigarette sales tax rate as follows (Art. 5, Sec. 10):
• From $0.024 to $0.142 per cigarette on cigarettes weighing up to 3 pounds per 1,000; and
• From $0.048 to $0.283 per cigarette on cigarettes weighing up to 3 pounds per 1,000.

• Requires a retailer making sales from outside the state to a destination within the state and not maintaining a place of business in the state to collect sales tax (Art. 8, Sec. 18).

• Specifies that capital equipment, used in the state for manufacturing, fabricating, mining, or refining tangible personal property to be sold at retail, is exempt from any taxes, whereas existing law required the collection of a tax and then a refund for the tax (Art. 8, Sec. 26).

• Exempts construction materials used for the public infrastructure related to the Destination Medical Center from being taxed, and authorizes the issuance of bonds for the purposes of implementing the Center (Art. 10, Sec. 2).

Full Bill Text