Dayton: Goodbye Grandma and Grandpa

Mark Dayton's Snowbird Tax

Excerpt:

It eliminates the "snowbird" tax loophole that allows people to live outside the state for six months, plus a day, and owe no state income tax. Dayton claims that closing the loophole, which would seem to be a delicate piece of legislation, would raise $500 million, though the Department of Revenue has no data to support that claim.

Comment: A direct quote from Dayton's website (PDF)

1. Add a 4th Income Tax Bracket of 10.95% on taxable income above $130,000/year for individuals and above $150,000/year for married couples, filing jointly. Raises an additional $1.899 billion for the biennium, according to the Department of Revenue.
   
2. Add a third Property Tax bracket of 2% on the value of homes over $1 million. Raises an additional $95.4 million for the biennium, according to the Department of Revenue.
   
3. Eliminate the "Snowbird" tax loophole that allows people to live outside Minnesota for six months and one day of the year, and pay no personal income taxes in this state. Raises estimated revenues of $500 million for the biennium (not available from the Department of Revenue).

Final comment: Some states are tax friendly to retirees ... not Minnesota. And less so under Mark Dayton's plan