Minnesota’s Four New Tax laws

Published On: 23rd July 2013

From the internet

Minnesota now has four new tax laws that went into effect on July 1st. Some of these taxes may have been noticed already, while some of them may not be noticed until later. There are also two new taxes that go into effect on August 1st.

The first of the new tax laws is the cigarette tax. This $1.60 per pack increase has made the total tax for a single pack of cigarettes $2.83. This follows a trend that other states have taken in increasing their cigarette tax. It is not necessarily in an effort to stop smoking as it is to gain revenue.

The second is online sales tax. eBay, Amazon, and iTunes are now required to collect state sales tax on purchases made from their stores. This includes all digital downloads that are sold.

The third is the top tier tax, which has been a hot topic for well over a month at this point. This tax affects the top two percent of earners in Minnesota. These individuals will pay 2 percent more tax on some of their income. There are approximately 54,400 taxpayers that this affects, as these are the individuals that earn upward of $250,000 a year with their spouse or they are single and earn at least $150,000.

The fourth is the legalizations of fee-based liquor tastings. Before, alcohol tasting was limited to just wine, but now tastings can include different types of liquor as long as a fee is paid.

As for the two new law changes that are coming about on August 1, the first has to do with marriage equality. On August 1, same-sex marriages will be legal in the state of Minnesota. Marriage licenses are also being changed to read “first applicant” and “second applicant” rather than “bride” and “groom.” The tax situation regarding same-sex couples is still in question as the IRS refers to their tax law to come up with a solution.

The second law change is that fake 911 calls will carry even harsher penalties. A person could be charged with a felony if another person is seriously injured while they are responding to the false emergency. While this is not tax-related, it is something that could result in heavy fines, fees, and could change a person’s life.

Sources: http://www.myfoxtwincities.com/story/22731726/4-new-taxes-and-laws-starting-july-1-in-minnesota