POPULATION: 5,344,861 (2011)
LABOR FORCE: 2,991,372 (August 2012)
RIGHT TO WORK: No
TRADITIONAL INDUSTRIES:Health services, medical product
manufacturing, computer
and electronic product manufacturing,
food processing,
industrial machinery
manufacturing
EXPANDING INDUSTRIES: Health services, educational
services, medical equipment
manufacturing, bioscience, biofuel
manufacturing, scientific
instrument manufacturing,
finance and insurance
COLLEGE GRADUATES: (Age 25 and over) 32.4% (2011)
BASIC BUSINESS TAXES:
Corporate Income Tax: Corporations' rate is 9.8 percent
with a three-factor apportionment
formula of 93 percent
sales, 3.5 percent property, and
3.5 percent payroll; after 2012:
96-2-2 (sales, property, payroll);
after 2013, one-factor sales formula
(100-sales)
Sales and Use Tax: The general
sales and use tax rate is 6.875
Minnesota refunds sales tax
paid on capital equipment
used in manufacturing.
Exemptions include fees for
equipment and installation
repair, most services, utilities,
chemicals, and gases used in
industrial production.
Property Tax: Personal property,
including machinery and inventory,
is exempt from property
tax; as well as personal property
used for control of air, water,
or land pollution including
heavy machinery that would be
considered real property otherwise.
Local governments tax all
real property not specifically
exempted; each property's
assessed value is multiplied by
1.5 percent for the first
$150,000 of value and 2 percent
of any value over
$150,000; this new value, or
tax capacity, is multiplied by
the local and state property tax
rates plus any local referendum
rate to determine property tax
liability.
BUSINESS INCENTIVES:
Job Opportunity Building
Zones — JOBZ (tax-free areas)
Minnesota Investment Fund
Program
Minnesota Job Skills
Partnerships
Data center sales tax
exemptions
