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Minnesota tax plans vary

ST. PAUL — The Minnesota House, Senate and governor’s tax plans vary in how they raise funds to cover a $627 million projected deficit and new investments.

Here are some highlights from the three plans and how they compare:

— Income taxes: Senate, raise third tier rate from 7.85 percent to 9.4 percent; House, new fourth tier, 8.49 percent for couples making more than $400,000 a year in taxable income, temporary surcharge on couples’ income more than $500,000; governor, new fourth tier, 9.85 percent for couples making more than $250,000

— Sales tax: Senate, lower from 6.875 percent to 6 percent, tax more items including clothing; House, no change; governor, no change

— Alcohol tax: Senate, no change; House, increase at wholesale level, about 7 cents per drink for consumers; governor, no change

— Cigarette tax increase from current $1.23 per pack: Senate, 94 cents; House, $1.60; governor, 94 cents

Danielle Killey

Danielle Killey covers local government for the South Washington County Bulletin. She has worked as a reporter for other Forum Communications newspapers since 2011. She graduated from the University of Minnesota-Twin Cities with a journalism degree.

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