Minnesota tax burden is no longer in top 10

06/12/2007

It's the first time since 1981 that taxes in the state and spending have ranked so low.


By Mark Brunswick,
Star Tribune
Last update: June 11, 2007


For the first time in about 25 years, Minnesota has dropped out of the top 10 in per capita tax rankings, according to an analysis of U.S. Census Bureau data, and now stands 12th in the nation in state and local taxes as well as in spending.

But when taxes and spending are measured as a percentage of personal income, the numbers really nosedive. By that measure, the state has fallen to 23rd in taxes and 31st in state and local government spending, according to the report from the Minnesota Center for Public Finance Research, an arm of the nonpartisan Minnesota Taxpayers Association.

The numbers reflect years of Gov. Tim Pawlenty's no-tax-increase policies and budget cuts, but they also show that local government appears to have remained in check as well.

For nearly three decades, Minnesota has almost always been in the top 10 in most bottom-line measures of tax burden. This is the first time since 1979 that it has dropped out of the top 10 in spending per person by state and local governments and the first time since 1981 that it has dropped from the top 10 in taxes per capita.

However, a year ago, a report from the Taxpayers Association, based on 2004 Census data, ranked Minnesota 16th among the states when state and local taxes were measured as a percentage of personal income.

READ MORE: Click HERE