Minnesota has a state budget deal. Now, it's time to vote.
A late night session ended with an agreement that will hit higher income earners and smokers.
Gov. Mark Dayton, House Speaker Paul Thissen and Senate Majority Leader Tom Bakk say the agreement will pave the way for the Legislature to pass its budget before a mandatory Monday night adjournment to the session.
- Income tax rate will increase by two percent for top two percent of income earners: couples making more than $250,000 per year and singles making $150,000 per year.
- Per-pack tax on cigarettes will increase by $1.60.
- Some corporate tax preferences will go away.
- There won't be any changes to the alcohol tax.
Combined, the taxes will generate $2 billion more for Minnesota's two-year budget. Democrats say there is $400 million in potential property tax relief in their plan.