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Minnesota Taxes and Tax Plans

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State tax policy that prioritizes everyday Minnesotans can expand economic opportunity, build thriving communities, and strengthen our economic future. However, tax policy can also widen income, wealth, and racial inequality if it primarily benefits those who are already doing well in today's economy.

We analyze individual tax proposals and full tax plans from the governor and legislative bodies, as well as the tax system overall, emphasizing the impact on everyday Minnesotans, tax fairness, and the ability of the tax system to raise the revenues needed to sustainably fund public investments that keep us moving forward as a state.

Research

July 2009

Surprise resolution to 2009 Legislative Session leaves long-term deficits

The 2009 Legislative Session ended in May with the job only partially done. Legislators and Governor Pawlenty spent the session attempting to negotiate a solution to a $4.6 billion state budget deficit for the FY 2010-11 biennium. As the legislature reached the constitutionally prescribed adjournment date on May 18, a $2.7 billion deficit still remained. After the session concluded with no negotiated agreement, the Governor exerted his authority to unilaterally “unallot” spending to resolve the remaining deficit and bring the budget into balance.

In the end, the FY 2010-11 budget deficit was resolved using a combination of spending reductions and one-time budget-balancing measures. The decision to rely heavily on one-time measures to fix the current deficit will have long-term implications as Minnesota is facing persistent budget deficits.

This analysis begins with a brief overview of the major elements of the solution to the FY 2010-11 budget deficit, then goes into greater detail to explain the budget proposals from the Governor, House, and Senate, and the final decisions that were reached.

May 2009

Few small business owners would be impacted by income tax increase on high-income households

No business or individual alone can provide for an educated workforce or safe roads and bridges. Taxes pay for these...

April 2009

Tax fairness in Minnesota declines further in 2006: Explaining the 2009 Tax Incidence Study

The 2009 Tax Incidence Study reveals that tax fairness in Minnesota has been on the decline since 1990s. This growing regressivity in the state's tax system is the result of two trends: growing income inequality and an increasing reliance on local taxes - particularly the property tax.

April 2009

Round two: Governor increases use of one-time resources in revised budget

Governor's Revised Budget Proposal Offers Short-Term Fix for Long-Term Budget Problems The real work of the 2009 Legisla...

Taxes and Tax Plans Blog Posts

March 29, 2023

House Property Tax Division bill includes transformational changes to the Renters’ Credit

One of the highlights of last year’s tax discussion is moving forward again this session: a game-changing proposal to...

March 23, 2023

Early agreement on state budget targets outline use of the surplus

On Tuesday, the Minnesota House and Senate leadership and Governor Tim Walz released joint budget targets that lay out ...

February 01, 2023

Governor Walz releases FY 2024-25 budget priorities

In his proposal for the two-year FY 2024-25 budget cycle, Governor Tim Walz proposes $11.2 billion in additional funding for public services, with the largest amount of new dollars going toward education, economic development, and health and human services. He also proposes $5.4 billion in tax reductions in FY 2024-25, with the biggest component being a one-time tax rebate. Read more in our blog.

January 25, 2023

Child poverty declines sharply thanks to federal Child Tax Credit expansion

Thanks in part to improvements policymakers made to the federal Child Tax Credit (CTC), recent U.S. Census data show that from 2019 to 2021, child poverty fell a remarkable 59 percent. Minnesota policymakers should build on that success and create a state Child Tax Credit.