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Other State Taxes

Taxes, other than the income and sales taxes, yield almost 28 percent of state tax revenues. Many of these taxes are minor revenue sources. Taxes that yield at least 1 percent of state tax revenues for fiscal year 2011 are described below.

	FY 2011 (millions)	FY 2011 (percent)
Individual income tax	$7,294	41.9%
Sales tax	5,284	30.4
All other	4,821	27.7
Corporate	968	5.6
Motor Vehicle Fuels	847	4.9
Statewide Property	762	4.4
Motor Vehicle Registration	545	3.1
MNCare	510	2.9
Tobacco	424	2.4
Insurance	348	2.0
Other	417	2.4

Corporate Franchise (Income) Tax [More]

• 9.8 percent of federal taxable income after numerous adjustments
• Multistate corporations apportion income under a three-factor formula using Minnesota shares of property, payroll, and sales; the formula weights sales at 90 percent and property and payroll at 5 percent each for tax year 2011; sales-only apportionment is being phased in by 2014
• Most volatile revenue source of any major state tax

Motor Vehicle Fuels Tax [More]

• $0.25/gallon
• Variable motor fuels surcharge (set at $.025/gallon for fiscal year 2011) to pay debt service on highway bonds
• Dedicated by constitution to the highway user trust fund

Statewide Property Tax [More]

• Raised $778 million in calendar year 2010; adjusted annually for inflation
• Levied against commercial/industrial and seasonal recreational property only

Motor Vehicle Registration (License) Tax [More]

• Tax on passenger vehicles is 1.25 percent of the value, plus a minimum fee of $10 (total tax cannot be less than $35)
• Value is manufacturer's base value, reduced under a depreciation schedule after the first year
• Trucks, buses, and other vehicles pay based on weight and age
• Dedicated by constitution to the highway user trust fund

Cigarette and Tobacco Products Tax [More]

• $0.48/pack of 20 cigarettes; 35 percent of wholesale price of tobacco products; $22.25 million goes to the Academic Health Center fund, $8.55 million to the medical education and research costs account, and the rest to the general fund
• Additional fee of $0.35/pack on cigarettes made by the companies not part of the legal settlement with the state
• Health Impact Fee of $0.75/pack and 35 percent of wholesale price of tobacco products; revenues flow through a special fund but ultimately go to the general fund

MinnesotaCare Taxes [More]

• 2 percent of gross revenues tax on hospitals, surgical centers, health care providers, and wholesale drug distributors
• Exemptions for Medicare, home health care services, and federal employee and military benefit programs
• Revenues pay for MinnesotaCare program

Insurance Premiums Tax [More]

• Basic tax is 2 percent of insurance premiums
• Mutual property-casualty insurers with assets as of December 31, 1989, of no more than $5 million, 0.5 percent rate; $1.6 billion, 1.26 percent rate
• HMOs and nonprofit health insurance companies (e.g., Blue Cross) are subject to a 1 percent rate
• Life insurance rate is 1.5 percent
• A "retaliatory tax" applies to non-Minnesota companies with higher home state taxes

Other State Tax Revenue

($4,821 million in FY 2011)

Fiscal Year	Actual Dollars (millions)	Constant 2011 Dollars (millions)
2001	$2,608	$3,283
2002	2,719	3,349
2003	3,325	4,018
2004	3,487	4,111
2005	3,885	4,445
2006	4,231	4,687
2007	4,683	5,035
2008	4,107	4,273
2009	4,359	4,458
2010	4,475	4,546
2011	4,821	4,821

For more information about other taxes, see the House Research miscellaneous taxes web page.

Originally published January 2011. Fiscal year 2011 data are from Minnesota Management and Budget, November 2010 forecast. Other data are from the Department of Revenue, unless otherwise noted.