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Gov. Mark Dayton Proposes $2.1 B in net New Taxes, Raising, Lowering Some Rates

Posted at: 01/22/2013 11:11 AM
Updated at: 01/22/2013 12:01 PM

ST. PAUL, Minn. (AP) - Minnesota Gov. Mark Dayton hopes to raise $2.1 billion more in state taxes, partly by subjecting more items to the sales tax in a tradeoff for a lowered rate.           

The Democrat's proposal Tuesday covers the waterfront in taxes. It would hike the amount owed on income above $150,000 for single filers, subject high-end clothing to the sales tax and raise cigarette taxes by 94 cents per pack. But he also wants to cut the corporate tax and provide property tax rebates of up to $500.

It's all contained in a two-year plan that would fuel about $38 billion in state spending. It includes a promise to schools to add $52 more in aid per student.           

Dayton's plan is the starting point in a debate likely to reach into May. 

Dayton's office released a list of how the tax plan would impact those in various parts of the state, including Rochester.

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