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Published May 20, 2013, 08:38 AM

Minnesota bill scooping up $2.1B in new taxes advances

ST. PAUL, Minn. (AP) — For the first time in five years, state taxes in Minnesota are headed up. But only on certain people and entities.

ST. PAUL, Minn. (AP) — For the first time in five years, state taxes in Minnesota are headed up. But only on certain people and entities.

The House early Monday approved a bill with a series of tax increases, with the Senate ready to follow suit.

It nets $2.1 billion more from taxes.

Some 54,400 taxpayers would pay a higher income tax, averaging $7,200 more per year. The new 9.85 percent upper income tax level gives Minnesota one of the country's top five rates.

The tax on a pack of cigarettes goes up $1.60. Corporations lose some tax preferences. And some businesses see more transactions subjected to the sales tax.

The bill contains $570 million in new credits and local government exemptions that backers frame as property tax relief. Some flows directly to homeowners.

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