Dear Neighbor,
The Howe family wishes you and your family a safe and happy Fourth of July.
Independence Day carries deep personal meaning for many of us when we think about the incredible sacrifices previous generations made for our freedom … and many Americans continue to make today. Sometimes we get caught up in the daily grind, but let’s take time this week to think about how good we really have it. Our nation is the greatest our world has ever seen and I look forward to celebrating our independence with friends and family.
On another note, many of the $2.1 billion in tax increases and hundreds of millions more in fee increases Gov. Mark Dayton and the legislative majorities passed this year took effect July 1.
Key changes include online purchases, a new fourth-tier income tax rate, increased cigarette taxes and increasing taxes on businesses. New fees – including those on driver’s licenses and vehicle registration – also went into effect.
Here is an overview:
Income taxes
The new 9.85 percent rate on the state’s high-income earners impacts:
Sales taxes
Taxes on a pack of cigarettes rose by $1.60 (from the current $1.23 to $2.83).
Vikings stadium bailout
Part of the revenue from the first year of the cigarette tax increase will be used to make up for the failure of electronic pulltabs to meet revenue projections to fund the state’s commitment to a new Minnesota Vikings stadium.
Online taxes
A sales tax also was added for online purchases such as ringtone downloads, music, videos, books and online computer games.
Business taxes
Businesses pay new sales taxes on warehousing and storage (not including mini-storage); electronic and commercial equipment repair and maintenance; and repealing the current sales tax exemption on telecommunications equipment purchases.
DMV fees
New fee increases are in place on driver’s licenses and vehicle registration.
God bless America and good luck,
Jeff