Signed by Governor Mark Dayton

Vote Smart's Synopsis:

Vote to concur with Senate amendments and pass a bill that amends certain tax laws.

Highlights:

• Repeals the sales tax on the following services, effective March 31, 2014 (Art. 2): 
• Repairing and maintaining electronic and precision equipment; 
• Repairing and maintaining commercial and industrial machinery and equipment; and
• Warehousing or storage for certain tangible personal property. 

• Exempts telecommunications and pay television service providers from sales tax on machinery and equipment purchases and sales made after March 31, 2014 (Art. 2).

• Repeals the Minnesota Gift Tax retroactively, applicable to all gifts made after June 30, 2013 (Art. 3).

• Requires a deceased individual’s personal representative to submit a Minnesota estate tax return if the sum of the federal gross estate and adjusted taxable gifts made within 3 years of the date of the individual’s death exceeds the following amounts (Art. 3): 
• $1.2 million for estates of individuals who die in 2014; 
• $1.4 million for estates of individuals who die in 2015; 
• $1.6 million for estates of individuals who die in 2016; 
• $1.8 million for estates of individuals who die in 2017; and
• $2 million for estates of individuals who die in 2018 and after. 

• Amends the tax rates and tax brackets for Minnesota taxable estates after the 2013 tax year, including, but not limited to, the following amended minimum rates and minimum brackets (Art. 3):
• 9 percent of the amount over $1.2 million for 2014 taxable estates over $1.2 million, but no more than $1.4 million;
• 10 percent of the amount over $1.4 million for 2015 taxable estates over $1.4 million, but no more than $3.6 million;
• 10 percent of the amount over $1.6 million for 2016 taxable estates over $1.6 million, but no more than $2.6 million;
• 10 percent of the amount over $1.8 million for 2017 taxable estates over $1.8 million, but no more than $2.1 million; and
• 10 percent of the amount over $2 million for taxable estates in and after 2018 that are over $2 million, but no more than $2.6 million.

Full Bill Text

Vote Smart's Synopsis:

Vote to pass a bill that amends certain tax laws.

Highlights:

• Repeals the sales tax on the following services, effective March 31, 2014 (Art. 2): 
• Repairing and maintaining electronic and precision equipment; 
• Repairing and maintaining commercial and industrial machinery and equipment; and
• Warehousing or storage for certain tangible personal property. 

• Exempts telecommunications and pay television service providers from sales tax on machinery and equipment purchases and sales made after March 31, 2014 (Art. 2).

• Repeals the Minnesota Gift Tax retroactively, applicable to all gifts made after June 30, 2013 (Art. 3).

• Requires a deceased individual’s personal representative to submit a Minnesota estate tax return if the sum of the federal gross estate and adjusted taxable gifts made within 3 years of the date of the individual’s death exceeds the following amounts (Art. 3): 
• $1.2 million for estates of individuals who die in 2014; 
• $1.4 million for estates of individuals who die in 2015; 
• $1.6 million for estates of individuals who die in 2016; 
• $1.8 million for estates of individuals who die in 2017; and
• $2 million for estates of individuals who die in 2018 and after. 

• Amends the tax rates and tax brackets for Minnesota taxable estates after the 2013 tax year, including, but not limited to, the following amended minimum rates and minimum brackets (Art. 3):
• 9 percent of the amount over $1.2 million for 2014 taxable estates over $1.2 million, but no more than $1.4 million;
• 10 percent of the amount over $1.4 million for 2015 taxable estates over $1.4 million, but no more than $3.6 million;
• 10 percent of the amount over $1.6 million for 2016 taxable estates over $1.6 million, but no more than $2.6 million;
• 10 percent of the amount over $1.8 million for 2017 taxable estates over $1.8 million, but no more than $2.1 million; and
• 10 percent of the amount over $2 million for taxable estates in and after 2018 that are over $2 million, but no more than $2.6 million.

Full Bill Text