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On November 29, 2025, the Minnesota Legislature announced the introduction of a new taxation bill designed to increase revenue for the state. The bill, which was proposed by Governor John Smith, includes a number of significant changes to the state's tax code.One of the key components of the bill is a proposal to increase the state's income tax rate for high-income earners. Under the new plan, individuals earning over $250,000 per year would see their income tax rate rise from 9.85% to 10.5%. This increase is expected to generate an estimated $100 million in additional revenue for the state.In addition to raising the income tax rate for high-income earners, the bill also includes measures to close corporate tax loopholes and increase the state's sales tax rate on certain luxury items. These changes are projected to bring in an additional $50 million and $25 million, respectively.Governor Smith defended the proposed tax increases, stating that they were necessary in order to fund key state services and programs. "We cannot continue to rely on borrowing and one-time funding sources to balance our budget," Smith said in a statement. "It is time for those who can afford it to pay their fair share."The new taxation bill is expected to face opposition from some lawmakers and business groups who argue that it will stifle economic growth and drive high-income earners out of the state. However, supporters of the bill believe that it is a necessary step towards ensuring the long-term financial health of Minnesota.The bill is set to be debated in the state legislature in the coming weeks, with a vote expected before the end of the year. If passed, the new tax measures could go into effect as early as January 1, 2026.