Minnesota Ranks Among Worst in Business Tax Climate
Thursday, October 10, 2013
According to the Tax Foundation, an independent, non-partisan research organization, Minnesota ranks near the bottom in business tax climate. Minnesota ranked 47th out of the 50 states. Wyoming was deemed to have the nation’s top tax policies, while New York was ranked last.
"The states in the bottom 10 suffer from the same afflictions: complex, non-neutral taxes with comparatively high rates,” wrote the report’s authors, Scott Drenkard and Joseph Henchman.
In the 2012 edition of the report, Minnesota ranked 45th. The report’s authors singled out the state for criticism over recent changes to tax policies, which included $2.1 billion in tax increases enacted during the most recent legislative session.
"Minnesota … enacted a package of tax changes that reduce the state’s competitiveness, including a retroactive hike in the individual income tax rate,” the report noted.
Minnesota was in the bottom half of the rankings in each of five tax categories assessed. It received its highest ranking on property taxes, placing 33rd. The state’s lowest ranking was on individual income taxes, where it ranked 47th. Only California, Hawaii and Oregon have higher top-tier income tax brackets than Minnesota.
To view a complete copy of the report, click here.