House Passes MN Tax Increases in New Budget - Valley News Live - KVLY/KXJB - Fargo/Grand Forks

House Passes MN Tax Increases in New Budget

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ST. PAUL, Minn. (AP) - For the first time in five years, state taxes in Minnesota are headed up. But only on certain people and entities.

The House early Monday approved a bill with a series of tax increases, with the Senate ready to follow suit.

It nets $2.1 billion more from taxes.

Some 54,400 taxpayers would pay a higher income tax, averaging $7,200 more per year. The new 9.85 percent upper income tax level gives Minnesota one of the country's top five rates.

The tax on a pack of cigarettes goes up $1.60. Corporations lose some tax preferences. And some businesses see more transactions subjected to the sales tax.

The bill contains $570 million in new credits and local government exemptions that backers frame as property tax relief. Some flows directly to homeowners.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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