The Taxpayers Legaue of Minnesota

A non-partisan, non-profit grassroots taxpayer advocacy organization for Minnesota

Minnesota Tax Quiz Answers PDF Print E-mail
Thursday, 03 September 2009 12:02

1. Where does Minnesota rank compared to others states for income tax rates (1st being the highest tax rate)?
C.
Minnesota has the 6th highest income tax rate in the nation. Although Minnesotans already pay high taxes, this year the state legislature sought to increase the state's income tax rates across all income levels. If Governor Pawlenty had not vetoed their tax bill, the highest state income tax bracket would have increased to 9.25%.


2. Where does Minnesota rank compared to other states for total state taxes (1st being the highest total state taxes)?
A.
Minnesota ranks 6th in total state taxes compared to other states. In ten years our state budget has grown by 60%. The average Minnesota family now pays over $8,400 in state taxes, excluding property and local taxes. With this type of growth in state spending, it's time for the legislature to give Minnesota families a tax break and not a tax increase.


3. Which of the following products did the state legislature try to raise taxes on by 180% this year?
B.
Beer, wine, and spirits are some of the highest taxed products because, on top of sales tax, you pay "sin" taxes. Because "sin" taxes can be easily justified by politicans, this year the state legislature easily passed a bill to increase beer taxes by an additional 180%. This would have caused the taxes on a barrel of beer to go from $4.60 to $12.80. Fortunately Governor Pawlenty vetoed the legislation.


4. How much per gallon do Minnesotans pay in gas taxes?
C.
Just think of how much cheaper it would be to fill up your tank with gas if you didn't have to pay gas taxes? Thanks to an increase in the gas tax in 2008, Minnesotans now pay 27 cents in state gas tax and 18 cents in federal gas tax. And the state gas tax is scheduled to increase again next July!


5. What is Minnesota's sales tax rate?
A.
Have you noticed that things are costing more these days? That's because the sales tax just increased across the entire state. Minnesotans now pay 6.875% in sales taxes (plus more in the Metro area). The new sales tax revenue ($300 million each year) is spent on arts, cultural heritage, and environmental projects.


6. How much on average did residential property taxes increase in Minnesota in 2009?
B.
Property valuations may have decreased as the housing market plummeted, but local governments don't want to reduce their budgets. In Minnesota that means that residential property taxes increased on average by 6% in 2009.


7. How do Minnesota property taxes compare to other states?
A.
Although property taxes have increased in the past year, Minnesota ranks in the middle (19th) among the 50 states in property taxes. This is due in part to over $1 billion in transfer payments to local governments from the state.


8. Where does Minnesota rank in corporate tax rates compared to other countries?
C.
Minnesota corporations pay the 3rd highest corporate taxes in the world, which is higher than other countries. The only other locations on the country with higher corporate tax rates are Iowa and Pennsylvania. Other states are seeking to reduce corporate tax rates in order to attract businesses, why not Minnesota? If Minnesota wants to encourage businesses to create jobs, the legislature needs to reduce the corporate tax burden.

 

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