Minnesota’s Shrinking Cigarette Tax

by | Aug 8, 2017

The price of most items that consumers purchase increases over time due to inflation. This year, however, the impact of inflation was removed as it applies to the tax on one of the most deadly over-the-counter products that Minnesotans can buy: cigarettes. The repeal...

Tax Regressivity in Minnesota vs. Other States

by | Aug 1, 2017

Minnesota policymakers of all political persuasions have touted the importance of reducing tax regressivity—in other words, reducing the extent to which taxes as a percent of income are borne disproportionately by low- and middle-income households. Thus, it should...

Minnesota’s Income Tax: Not the Most Progressive

by | Jul 26, 2017

Like many states, Minnesota offsets the regressivity of sales and property taxes through a progressive income tax. Minnesota’s income tax became more progressive in 2013 with the addition of a fourth income tax bracket for high-income households. Even after enactment...

Aid, Tax, and Revenue Trends in Three Cities

by | Jul 12, 2017

In recent decades, steep reductions in state aid to Minnesota cities have resulted in significant increases in real (i.e., inflation-adjusted) per capita city property taxes and reductions in real per capita city revenues. Aggregate city data, however, can conceal...

State Aid Ups & (Mostly) Downs for Cities

by | Jul 10, 2017

Except for a few intermittent spikes, state aid to Minnesota cities has trended downward since 1990. In general, cities have dealt with declining state aid through a combination of property tax increases and budget reductions, although the city response to aid...

Minnesota Businesses Benefit from State & Local Taxes

by | Jun 30, 2017

It is common for businesses to complain about taxes without considering the benefits that they provide. Taxes are not collected and then buried in a hole. They are used to provide education and public safety, protect property rights, and construct and maintain public...