On March 14, 2013, Minnesota governor Mark Dayton released his revised budget. The governor recently announced he was abandoning his original January budget, elements of which were incorporated into S.F. 552 (click here for our summary of the original budget and here for our summary of S.F. 552). His revised budget does not include previous proposals for an expanded sales tax base, corporate tax rate reduction, property tax refunds, or the up-front capital equipment exemption.
The revised budget retains some of the provisions that were in his original budget, including: (1) creating a new 4th tier 9.85% personal income tax bracket; (2) collecting sales tax for online transactions; (3) reducing the unemployment insurance tax; (4) disallowing the tax effects of a transaction that does not have economic substance; and (5) presumably repealing the current subtraction for foreign royalties and provisions for foreign operating corporations (FOCs). [A Fair Tax System for All Minnesotans, Governor Mark Dayton (March 2013), Budget for a Better Minnesota: Jobs, Governor Mark Dayton (March 2013)].