Dear Neighbor,
The Anderson family wishes you and yours well on the Fourth of July.
There are several events in the area during the upcoming week, including parades in Melrose (7:30 p.m. Saturday, June 29), Villard (2p.m. Saturday, July 6) and Starbuck (5:30 p.m. Saturday, July 6). I hope you are able to join me in getting out to celebrate our nation's independence.
Our state's businesses are still working to fully recover from the recession and this Fourth of July week traditionally is huge for them.
The
2013 Tourism and the Economy Brochure from Explore Minnesota indicates our state's leisure and hospitality industry grossed $11.9 billion in the year 2011. Counties which make up House District 12B grossed more than $370 million that year, including Stearns ($266 million) Douglas ($94 million) and Pope ($12 million). This translates to more than 10,000 combined jobs in those counties, the report says.
Let's hope the Fourth of July week is a good one for our local economy!
The start of July also means a number of new laws take effect. As of July 1, most of the $2.1 billion in tax increases and hundreds of millions more in fee increases passed by Gov. Mark Dayton and the legislative hit the books. Here's a look at some notable changes:
Income tax
The new 9.85 percent rate on the state’s high-income earners will impact:
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married people who file jointly with a taxable income of more than $250,000;
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married people who file separately with a taxable income of over $125,000;
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heads of household with a taxable income of over $200,000; and
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single filers making over $150,000.
Cigarette tax
Taxes on a pack of cigarettes will rise by $1.60 (from the current $1.23 to $2.83).
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Other tobacco products will also be taxed at higher rates, including taxing “little cigars” as cigarettes and taxing each container of “moist snuff” at the same rate as a pack of cigarettes or 95 percent of the wholesale sales price, whichever is higher.
Vikings stadium bail-out tax
Part of the revenue from the first year of the cigarette tax increase will be used to help make up for the failure of e-pulltabs to generate the amount of revenue projected to pay for the state's portion of a new Vikings stadium.
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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. That is expected to raise $32.4 million, of which $26.5 million will go to the special fund used for the stadium.
Internet purchase tax
A sales tax also will be added for online purchases such as ringtone downloads, music, videos, books and online computer games.
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Digital college textbooks will receive exemptions.
Business tax
Businesses will have to pay new sales taxes on warehousing and storage (not including mini-storage); electronic and commercial equipment repair and maintenance; and through repealing the current sales tax exemption on telecommunications equipment purchases.
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These taxes are likely to result in higher consumer costs for all of us, including the state's lowest earners.
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The warehousing and storage services taxes have received wide criticism because they would make our state less competitive in the business world. Those taxes are set for implementation in April of 2014.
DMV fees
New fee increases will be added to driver’s licenses and vehicle registration.
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The option of a $5 wheelage tax has been expanded to include all 87 counties in Minnesota, with the amount increased to $10 in 2014 followed by up to $20 beginning in 2018.
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New law also increases a flat amount charged for some older model collector vehicles (from $90 to $150).
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Starting in 2017, fees for new vehicle titles will increase from $6.25 to $8.25, while a $5.50 title transfer fee is eliminated.
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The filing fee for a new or renewed driver’s license or state identification card is increased from $5 to $8.
You can click here to find more information on these tax increases, along with all the other laws that go into effect July 1.
Have fun, be safe and hope to see you out and about over the Fourth of July holiday.
Sincerely,
Paul