Menu Search

Minnesota Taxes and Tax Plans

taxes

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

October 2009

Tax changes in the 2009 Legislative Session: Propsoals, vetoes, and unallotment

The Legislature and Governor Pawlenty Disagreed on the Role of Taxes in Resolving the State's Budget Shortfall The...

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.

Taxes and Tax Plans Blog Posts

June 24, 2019

Final tax plan boosts tax credits for working Minnesotans, but falls short on future stability

The 2019 tax bill agreed to by Governor Tim Walz and the Minnesota Legislature in the recently completed special legisla...

May 21, 2019

Global budget deal reached Sunday; more work needed to pass final budget

On Sunday evening after weeks of negotiations, legislative leaders and Governor Tim Walz announced a global budget deal....

May 17, 2019

All tax plans on the table raise revenues: the difference is how much and who benefits

The negotiations to reach a budget deal this session have at times been characterized as a debate between raising taxes...

May 06, 2019

Real people, real communities: Why maintaining the provider tax is so important

It’s hard to avoid news about the health care provider tax if you follow politics in Minnesota. Our state’s provider tax...