The Minnesota Senate has proposed its own version of the Omnibus Tax Bill (S.F. 2074). This bill has numerous tax law changes and increases similar to the House Bill discussed in a previous post. However, it does include less of the offensive tax increases or disallowance of federal itemized deductions (i.e., mortgage interest, etc.).
Individual Income Tax Bracket Changes
With that said, it does make serious changes to the income tax brackets and rates for individuals, estates and trusts. The bill proposes to adjust the current three brackets and rates and adds a fourth tier bracket and rate. The new rates are for tax years 2009 through 2013, with a return to current rates in tax year 2014 (including expiration of the fourth tier).
The current rates are changed as follows: 5.35 percent to 6.00 percent, 7.05 percent to 7.70 percent, 7.85 percent to 8.50 percent. The income brackets are changed to reflect the inflation adjustment for 2009 as the new base year. The new fourth tier rate is 9.25 percent, and it begins at the following taxable net income levels: $250,000 for married individuals filing joint returns ($125,000 for married filing separately), $141,250 for unmarried individuals, and $212,500 for unmarried individuals qualifying as head of household.
Click on the following link for access to the entire bill:
http://www.senate.leg.state.mn.us/departments/scr/billsumm/summary_display.php?ls=86&session=regular&body=Senate&billtype=SF&billnumber=2074&ss_year=0
If you have any questions, please contact me at leveragesalt@earthlink.net.
