ST. PAUL—State Representative Joyce Peppin, R-Rogers, announced that new laws passed during the 2013 legislative session will go into effect July 1, including the new budget tax increases signed by Governor Mark Dayton.
“The month of July brings with it Fourth of July parades, picnics and fireworks, but it also serves as the enactment month for many new laws and a new budget passed by the 2013 legislature,” Peppin said. “For families in the northwest suburbs, that budget includes tax increases that will substantially impact their take home pay and make it harder to make ends meet. I would have preferred a more common-sense, responsible budget that lived within its means. Instead, state government will grow by nearly 10 percent, as the economy recovers slowly at 2-3 percent.”
On July 1 the new $2.1 billion in tax increases will also go into effect. This includes a fourth tier income tax rate of 9.85 percent (a 25 percent increase) on small business owners and single filers making over $150,000 or couples making over $250,000. The cigarette tax will increase from $1.23 to $2.83 per pack. To prevent retailers and wholesalers from stockpiling product before that date, a one-time new cigarette tax equal to the tax increase will be imposed on current inventories. The sales tax will expand to internet sales and downloads (like ringtones, music, videos and books) and farm and industrial equipment repairs, and it will increase for car rentals.
Peppin listed other examples of new laws that will come into effect the first of the month, and the potential impact of these statutory changes:
“Depending on your point of view, this budget will either bring stability to the tax system or penalize hardworking families and serve as an impediment to economic growth,” Peppin stated. “My view is that a bigger budget doesn’t necessarily mean a better budget. The economic improvements over the past two years are convincing evidence that when we let the private sector thrive and grow, and make government work for the people and not the other way around, our economic quality of life improves.”
Peppin invites and encourages constituents to contact her throughout the summer months. She can be reached at rep.joyce.peppin@house.mn, 651.296.7806, or 281 State Office Building, 100 Martin Luther King Jr. Blvd., St. Paul, MN 55155.