Senate OTB Offer 1

Tax Revenue FY 14-15 Biennium

5/15/2013 1:53 PM

FY 16-17 Biennium

Income Tax 4th Tier at 8.84% on MJ Filers at $250,000 4th Tier at 10.7% on MJ Filers at $250,000 Surtax at $500,000 for Two Years Increase AMT Rate, the AMT Exemption Amount & Phase-Out Threshold Repeal Long-Term Care Insurance Tax Credit Charitable Contribution Credit Make R&D Credit Non Refundable MA Subtraction Historic Credit (Retroactive and Sunset Extension Shortline Railroad Subtraction Angel Investment Credit Increase Greater MN Internship Credit Interactions Subtotal - Income Tax Corporate Tax Limit Foreign Royalty Subtraction to Unitary Groups that have R&D FOC Repeal with Interaction Foreign Royatly Subtraction at 50% - House Measurement of MN Sales Foreign Partnerships REIT Dividends Increase the Minimum Fee Tax Havens Modify R&D Tax Credit, Non Refundable Corporate Expenditures Subtotal - Corporate Tax Federal Conformity (Individual + Corporate) Increased Section 179 Expensing, with 80% Addback & 5-Year Recovery (TY 13) 50% Bonus Depreciation, with 80% Addback & 5-Year Recovery (TY 13) Working Family Credit- Increase Phaseout Range for MJ by $5,000 (Governor) Subtotal - Federal Conformity Estate Taxes Modify Qualified Farm and Small Business Provisions Impose Gift Tax & Include Certain Gifts in Estate Taxation of Non Resident Property Held in a Pass Through Subtotal - Estate Tax Special Taxes Cigarette/Tobacco Cigarette Tax Increase, $1.60/per pack Other Tobacco Products, to 95% of wholesale price 1

1,594,433 Unknown (13,000) (4,000) (120) (10,000) (2,020) 10,000 1,575,293

1,631,055 (15,500) (25,500) (4,040) 18,000 1,604,015

65,900 46,000 12,000 2,000 18,700 (37,000) 107,600

54,200 40,000 12,000 2,000 19,400 (37,000) 90,600

(34,400) (34,400)

(35,500) (35,500)

23,800 23,800

47,200 47,200

Senate OTB Offer 1

Tax Revenue
Impose Cigarette Tax on Little Cigars Cigarette Tax Increase, $0.94/per pack Other Tobacco Products, to 90% of wholesale price Impose Cigarette Tax on Little Cigars & Set Max on Premium Cigars Subtotal - Cigarette Alcohol Tax Increase, 7 cents/drink with Small Brewer/Winery Credits Brewers Alcohol Tax Credit Small Winery Credit (House - except corresponds to current law wine tax) MV Rental Tax Increase to 9.2% Sports Memorabilia to 13% Subtotal - Special Taxes Other Mineral Tax Increase Taconite Occupation Rate from 2.45% to 4.95%
Occupation Tax - Reduction in Distribution to the GF; Deposit in the Special Revenue Fund

5/15/2013 1:53 PM

FY 14-15 Biennium
298,980 17,290 16,300 332,570

FY 16-17 Biennium
307,310 28,720 17,000 353,030

(840) (74) 15,000 14,086

(860) (74) 16,500 15,566

(3,900) (11,000) (480)

(4,140) (11,000) (3,497)

Pension Aid - Volunteer Firefighters Bloomington MOA-Infrastructure Aid Sales Tax (at current law general sales tax rate of 6.5%) Sales Tax Base Expansion Warehousing & Storage - Included above Sales Tax Exemption for Cities/Counties, Effective Jan. 1. 2014 Upfront Capital Equipment Sales Tax Exemption All Other Sales Tax Exemptions Offset for Impacts to GF for Stadium and Aviation/State Airport Fund Subtotal Sales Parallel Taxation of Direct Satellite Services Digital Products (Placeholder Estimate) W/House Fix and Subsequent Senate Fix Admission to Stadium Box Seats & Suites - Pro Sports Affiliate Nexus/Drop Ship New Method for Calculating Motor Vehicle Paint & Materials Total Sales TOTAL

408,500 (172,000) (139,600) (23,571) (55,800) 17,529 2,460 8,260 4,700 9,700 5,100 47,749 2,051,318

492,300 (254,100) (49,100) (34,926) (55,800) 98,374 2,880 9,890 6,100 12,400 5,700 135,344 2,191,618

*Base expansion includes: Warehousing & Storage, Electronic and Commercial Repair & Maintenance, Telecommuncations equipment *Exemptions: Local Gov'ts, Upfront Capital Equip, Aircraft provisions, Multiple Points of Use, Sales between a religious order and a higher education institution, Nursing homes, Data Centers, Certain Dental Clinics, 3M, Emerson, Baxter, DMC, Greater MN Expansion, DME, Coin Operated, NP car sharing *Historic credit sunset extension w/o cap and with revised revenue estimate (5.7) & Retroactive/Clarifying Eff. Date