MINNESOTA IMPOSES GIFT TAX
On May 20, 2013, the Minnesota Legislature passed the Omnibus Tax Bill, which includes significant changes to Minnesota tax law. One major change under the Bill is the imposition of a Minnesota-specific Gift Tax effective July 1, 2013. This new Gift Tax may have wide-ranging impact on Minnesota taxpayers. If you have been considering making a significant gift (more than the current yearly exemption amount of $14,000 per recipient), you should consult with your advisors in a timely manner. The Bill establishes a 10% tax on gifts and a $100,000 lifetime gifting exemption. This exemption essentially means that a Minnesotan would be able to make $1 million in gifts during his/her lifetime. However, there would be a requirement to file a gift tax return for any gift above the yearly exemption. More details to follow.