State Taxes
Minnesota's income tax is slightly progressive with three rates, 5.35%, 7.05% and 7.85%. The sales tax in Minnesota for most items is 6.875% effective July 1, 2009. The state does not charge sales tax on clothing, some services, or food items for home consumption. The state legislature may allow municipalities to institute local sales taxes and special local taxes, such as the 0.5% supplemental sales tax in Minneapolis. The cities of St. Paul, Rochester, Duluth and St. Cloud have similar taxes. Excise taxes are levied on alcohol, tobacco, and motor fuel. The state imposes a use tax on items purchased elsewhere but used within Minnesota. Owners of real property in Minnesota pay property tax to their county, municipality, school district, and special taxing districts. The overall state and local tax burden is calculated to average 11.9% in 2006, ranking 4th highest in the country.
Read more about this topic: Economy Of Minnesota
Famous quotes containing the words state and/or taxes:
“Worn down by the hoofs of millions of half-wild Texas cattle driven along it to the railheads in Kansas, the trail was a bare, brown, dusty strip hundreds of miles long, lined with the bleaching bones of longhorns and cow ponies. Here and there a broken-down chuck wagon or a small mound marking the grave of some cowhand buried by his partners “on the lone prairie” gave evidence to the hardships of the journey.”
—For the State of Kansas, U.S. public relief program (1935-1943)
“The goof man, in dealing with his people, taxes them with luxury.”
—Ralph Waldo Emerson (1803–1882)