The Redwood gazette. [volume] (Redwood Falls, Minn.) 1873-1940, 1937-07-29
Higher Rates
Will Balance
State Budget
NEW INCOME TAX WILL
MAKE 10000 NEW
TAXPAYERS

Reductions in exemptions Will
bring an estimated 10000 Min
nesota residents into the income
tax paying class this year, one of
many changes in tax laws which
the legislature, which adjourned
last week, expects will balance
the state budget including an
Sll, 100000 emergency relief bill
(marked down from S17,0OO,OOO)
and finance the education of state
children to the extent of S25, OO3,-
800, an increase of 100000 from
the previous year.
New taxes will provide in the
vicinity of 100000 during the
next two years, of which $780,
600 is expected from mining taxes,
Sl2,6OO,OOG from the income tax,
S2.5OO,O00 from liquor taxes and
$1,000, 900 from increases In gross
earnings leVies.
The state tax rate, according to
information released to members
by the Minnesota Taxpayers asso-
citation, will be 11.2 mills in 1888
and 11.8 mills in 1889. The rate
this year was 12.45 mills.
Following is a brief summary
of the tax changes made by the
special session:
Inheritance Tax Rates: One per
cent on $4,000 to eight per cent
on S750,000 estate going to widow.
Primary rate same as at present
ranging from one per cent on wife
to five per cent on strangers. Null
tiple rate begins at two times pri-
mary rate $4,000 to $4,000 to
II times primary rate on all over
S1,10O,000 with a maximum of 35
per cent.
Income Tax on Corporations:
Flat rate of seven per cent for
1887 and 1888; and six per cent
thereafter. EXemptS mining COM
panies but includes building and
loan companies. Corporations re-
ceiVe a credit of one-tenth of
average of proportion of property
and payrolls in and out of the
state.
Individual Income Tax: One
per cent to eight per cent up to
$4,000 income; eight per cent on
incomes between $4,000 and S12,-
500; nine per cent on incomes be-
tween S12,5OO and $20,OO0; ten
per cent on incomes over $50 900.
Exemptions: (deductible from
TAX $50 for married; $40 for sin
gle; S. for dependents. Allows de-
auction medical expenses and
20
for insurance premiums tax. AL
location of income tax proceeds is
made on basis of $40 per pupil
residing in district, between ages
six and Is, inclusive. Those in
sixteenth year not included I'M
less in actual attendance in
school,
Chain Store Tax based on num-
Der of stores in chain in Mime
sofa. Oil stations, elevators,
lumber and fuel dealers exempt
ed. Rates begin at $40 for first
two stores and graduated up to
maximum of $3.50 on all over $50
stores in the chain. Tax on mail
order stores begins at 5000 for the
HISl SlOIS dllO 81 doudtSS " q
maximum of $1,000 on all over
nine.
Gross Earning Tax raises
freight lines from six to seven
per cent; sleeping car companies,
five to six; express companies,
eight to nine per cent; trust COM
panies, five to six per cent.
Tax on Telegraph Companies
calls for imposition of seven per
cent gross earnings tax instead of
present method of applying an
average tax rate on property val
uation basis.
Telephone Companies tax rate
is four per cent on earnings from
cities of the fourth class and
places of 10000 or less; seven per
cent on all other business done. A
second bill with a maximum of
Continued on Page 12)