new minnesota laws

by tiM richarD serkLanD LaW FirM, Fargo

In addition to several new income tax laws recently passed in Minnesota, a new gift tax and changes to the estate tax rules were also added, much to the surprise of most attorneys and tax advisors. Effective June 30, 2013, Minnesota becomes only the second state in the country (Connecticut being the first) to impose a state gift tax. Minnesota is now also trying to make sure that non-residents who own property in Minnesota pay state estate tax on that property.

Whether you are a resident or not, any gift of Minnesota property to any person worth more than $14,000 (the annual exclusion under federal law) is subject to Minnesota gift tax. Minnesota does give a $1,000,000 lifetime exemption, but any gifts over that amount will be taxed at a flat rate