New state gift tax begins today

Author:
Updated:
Original:

A new state gift tax that went into effect Monday makes Minnesota the second state in the country to tax gifts between residents. But only the wealthy will pay the price; the new tax only applies to gifts of $1 million or more over a lifetime.

The Pioneer Press reports the tax was included in the omnibus tax bill approved by the Legislature. The Minnesota Department of Revenue expects it to generate about $13.5 million in 2014.

The new law is similar to, and imposed in addition to, a federal gift tax law. Both place a 10 percent tax on gifts worth more than $14,000 to a single recipient in a single year. Married couples can combine their $14,000 and would then have to give gifts totaling $28,000 to trigger the tax. Married couples may also elect to combine their $100,000 lifetime credits. Gifts between spouses and gifts to charity are exempted from the new tax.

Business owners hoping to pass down their businesses to their children before they die will now pay a gift tax if the business is valued at more than $1 million.

Next Up

Screen Shot 2020-11-25 at 7.34.43 AM

Watch: Drunk squirrel in Minnesota captures the world's attention

The squirrel was immediately cut off after nearly tipping over.

Screen Shot 2020-11-25 at 7.15.09 PM

Small town gym refusing to close facing lawsuit from attorney general

The gym is facing a lawsuit and a temporary restraining order to halt their operations.

credit card, payment

Money Gal Coaching: Bouncing back after living your best life

Kelly Blodgett started Money Gal Coaching after paying down nearly $50K in debt in 18 months.

flickr-mall-of-america-mitchell-hirsch-march-2019

When do stores open on Black Friday this year?

Many major retailers will be open Black Friday, some for extended hours.

police tape, crime scene

Man found dead outside home near Cass Lake

The man was reportedly shot outside the property.

Minnesota_Welcome_Sign_-_Minnesota_Welcomes_You_-_Taylors_Falls_(28269804891)

Gov. Walz announces $1M in grants to boost Minnesota tourism

The money will be used for marketing efforts to attract people to Minnesota's hard-hit tourist spots.

coronavirus, ICU

Nov. 25 COVID-19 update: 72 deaths ties Minnesota's single-day high

A COVID-19 update will not be provided on Thanksgiving Day.

Texa-Tonka

Revival to open its fourth Twin Cities location

The fried chicken and smoked meat maestros are moving to St. Louis Park.

Duluth and Case Recreation Center

St. Paul to open two extra temporary shelters for homeless people

Mayor Melvin Carter announced the new shelters will be opened in the event of excess demand.

vote, election

Minnesota once again had the highest election turnout in the country

Amid the COVID-19 pandemic, a record percentage of voters also sent in absentee ballots.

Related