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Estimated Change in Minnesota State Sales Tax Revenue Resulting

from Various Changes to Sales Tax Base and Rates

FY 2012-13
All amounts in millions
Expanding the sales tax base to Will generate the following estimated
include… increase/decrease in revenue if the tax rate…
remains at reduced to reduced to reduced to reduced to
6.875% 6.375% 5.875% 5.375% 4.875%
Selected Services $5,412.2 $4,306.5 $3,200.7 $2,095.0 $989.3
Consumer services only $867.9 $92.7 -$682.6 -$1,457.8 -$2,233.0
Business services only $4,544.3 $3,501.7 $2,459.1 $1,416.5 $373.9
Legal services: total $615.6 -$141.3 -$898.2 -$1,655.0 -$2,411.9
Legal services: consumer only $195.6 -$530.7 -$1,257.1 -$1,983.4 -$2,709.8
Legal services: business only $420.0 -$322.7 -$1,065.3 -$1,808.0 -$2,550.6
Accounting & bookkeeping services: total $343.9 -$393.2 -$1,130.3 -$1,867.5 -$2,604.6
Accounting & bookkeeping services: consumer only $27.9 -$686.2 -$1,400.4 -$2,114.5 -$2,828.7
Accounting & bookkeeping services: business only $316.0 -$419.1 -$1,154.2 -$1,889.3 -$2,624.4
Clothing and Wearing Apparel $638.5 -$120.0 -$878.6 -$1,637.1 -$2,395.7
Food Products $1,496.4 $675.5 -$145.5 -$966.4 -$1,787.4
Drugs and Medicines* $296.7 -$437.0 -$1,170.7 -$1,904.4 -$2,638.1
Motor Fuels† $1,298.1 $491.6 -$314.9 -$1,121.5 -$1,928.0
Residential Heating Fuels $281.7 -$450.9 -$1,183.5 -$1,916.1 -$2,648.7
Publications* $67.5 -$649.6 -$1,366.6 -$2,083.6 -$2,800.6
Capital Equipment $573.5 -$180.3 -$934.1 -$1,688.0 -$2,441.8
Prescription Eyeglasses $75.9 -$641.7 -$1,359.4 -$2,077.0 -$2,794.6
Telecommunications Equipment $62.5 -$654.2 -$1,370.8 -$2,087.5 -$2,804.1
Airflight Equipment $39.8 -$675.2 -$1,390.2 -$2,105.2 -$2,820.2
Farm Machinery $80.4 -$637.6 -$1,355.5 -$2,073.5 -$2,791.4
Textbooks Required for School Use $55.8 -$660.4 -$1,376.5 -$2,092.7 -$2,808.9
Residential Water Services and Sewer Services $122.4 -$598.6 -$1,319.6 -$2,040.6 -$2,761.7
All other items in MN 2010 TEB not listed above* $161.6 -$562.3 -$1,286.1 -$2,010.0 -$2,733.9
Combinations of items
All items listed above* $10,663.0 $9,175.4 $7,687.8 $6,200.2 $4,712.6
All items listed above excluding food* $9,166.6 $7,787.8 $6,409.0 $5,030.2 $3,651.5
All items listed above excluding food products, drugs
& medicines, medical devices, motor & residential
heating fuels, eyeglasses, textbooks & personal $7,141.9 $5,910.3 $4,678.8 $3,447.3 $2,215.8
computers for school use, and fire fighter protective
equipment*
All goods listed above, but no additional services* $5,128.4 $4,043.3 $2,958.2 $1,873.1 $788.0
All goods listed above except food products, but no
$3,632.0 $2,655.7 $1,679.4 $703.2 -$273.1
additional services*
All services listed above, but no additional goods
$6,173.1 $5,012.0 $3,851.0 $2,689.9 $1,528.8
except clothing
Clothing and selected services--consumer only $1,506.4 $684.7 -$136.9 -$958.6 -$1,780.3

With the exception of the first column (i.e., "Rate remains at 6.875%"), specific items within a column cannot be summed.
See technical notes for explanation of data and methods used to create this table.
*Partially reduced relative to TEB estimates in recognition of collectability issues. See technical notes for more detail.
†By some interpretations, sales tax revenue from motor fuels must be dedicated to roads. See technical notes.
Assumes changes implemented on or before June 1, 2011
C:\work\123\Sales Tax\[Sales Tax Exemption.xls]FY 12-13