| The Bureau of Economic Analysis estimates | | | | tied to the renewable energy market in the |
| that Minnesota's total state product in 2003 | | | | state. |
| was $211 billion. Per capita personal income | | | | |
| in 2004 was $34,861, 8th in the nation. The | | | | Energy use and production A fair amount of |
| average household income in 1999 was | | | | ethanol alcohol fuel is produced in the |
| approximately $48,000, ranking eighth in the | | | | state, and a 10% mix of ethanol into consumer |
| nation (U.S. | | | | gasoline has been mandated since 1997 (as of |
| | | | January 2006, Minnesota is the only U.S. |
| Census Bureau). The county averages range | | | | state with such a mandate). 20% ethanol will |
| from $17,369 (Todd County) to $42,313 | | | | be mandated in 2013. A 2% biodiesel blend has |
| (Hennepin County, a portion of the Metro | | | | also been required in diesel fuel since 2005. |
| area). In general, salaries are lowest in | | | | Many farmers also now operate wind turbines |
| more rural areas, particularly in the | | | | to produce electricity, particularly in the |
| northwest portion of the state. | | | | windy southwest region. As of January 2005, |
| | | | the state is the country's fourth-largest |
| The state is a major food producer for the | | | | wind energy producer after California, Texas, |
| country and has a number of natural resources | | | | and Iowa, with 615 megawatts installed and an |
| that have been greatly exploited in the last | | | | additional 213 MW planned. |
| two centuries. | | | | |
| | | | Like many Midwestern states, Minnesota is |
| Major industries and products The Twin Cities | | | | heavily dependent on natural gas for home |
| are home to a diverse range of major | | | | heating. Just over two-thirds of homes use |
| businesses, including Cargill, 3M Co. | | | | the fuel. The state does not produce any |
| (formerly Minnesota Mining and Manufacturing | | | | petroleum of its own but boasts the largest |
| Co.), Northwest Airlines, Target Corporation, | | | | oil refinery of any non-oil-producing state, |
| U.S. | | | | the Pine Bend Refinery. One of the longest |
| | | | pipelines in the world, the Lakehead |
| Bancorp, TCF Financial Corporation and TCF | | | | Pipeline, also traverses northern Minnesota. |
| Bank, Medtronic, Ecolab, Best Buy, Cray | | | | Most of the petroleum used in the state comes |
| Computers, Imation, International Dairy | | | | from Canada and the northwestern United |
| Queen, Regis Corporation, General Mills, | | | | States. |
| Polaris Industries and a regional | | | | |
| headquarters of Wells Fargo & Co., | | | | State taxes Minnesota has 3 brackets of |
| Caterpillar Inc., Honeywell, and Thrivent | | | | income tax rates, ranging from 5.35 percent |
| Financial for Lutherans (the merged entity of | | | | to 7.85 percent. The sales tax in Minnesota |
| the former Aid Association for Lutherans and | | | | for most items is 6.5 percent. The state does |
| Lutheran Brotherhood). The city of Rochester | | | | not charge sales tax on clothing, services |
| is the headquarters of the Mayo Clinic, and | | | | (massages, haircuts, auto work, and the |
| has a significant manufacturing presence in | | | | like), or food items for home consumption, |
| International Business Machines. The largest | | | | excluding some specific items such as candy |
| shopping mall in the United States, the Mall | | | | or soft drinks. |
| of America, is located in Bloomington. The | | | | |
| Schwan Food Company, headquartered in | | | | According to state law, "Candy does not |
| Marshall, Minnesota, is one of the largest, | | | | include any preparation containing flour and |
| branded frozen-food companies in the United | | | | must require no refrigeration." (Minn Stat |
| States and the second-largest privately held | | | | 297A.61 Subd 33). The state also imposes a |
| corporation in Minnesota. | | | | use tax on items purchased elsewhere but used |
| | | | within Minnesota. |
| Hormel Foods Corporation is headquartered in | | | | |
| Austin, Minnesota, it is a leading producer | | | | Minnesota property owners pay property tax to |
| in meat products. | | | | their county. Three factors that affect the |
| | | | tax bill are: the amount the local |
| The state has been a major influence in the | | | | governments spend to provide services to the |
| area of transportation, moving products along | | | | community, the estimated market value of the |
| the Mississippi River, in and out of the | | | | property, and the classification of the |
| inland seaport of Duluth, along railroads | | | | property (how it is used). |
| that crisscross the state, via highways with | | | | |
| trucking and busing companies, and through | | | | Minnesota businesses and individuals paid an |
| the air with a major airline hub. However, | | | | average of 11.8% of their income in state and |
| water- and rail-borne traffic has been | | | | local taxes in 1998, down from 12.7% in 1996 |
| declining steadily over the years. | | | | (Minnesota Department of Revenue). The Gross |
| | | | State Product was just under $173 billion in |
| A large proportion of the state's economy is | | | | 1999 (Northeast Midwest Institute), with |
| still agricultural, even though only a small | | | | approximately $17.5 billion in exports in |
| percentage of the population (around 2%) | | | | 2000. |
| consider themselves to be farmers. Minnesota | | | | |
| is a leading US producer of sugar beets, | | | | Retail sales per capita were $10,260 in 1997, |
| soybeans, and corn. Additionally, northern | | | | higher than the U.S. average of $9,190 (U.S. |
| Minnesota is a source for iron ore (in the | | | | Census Bureau). The "retail capitol" of the |
| form of taconite) and wood products, though | | | | state is probably the Twin Cities suburb of |
| these are both declining industries. Hibbing | | | | Roseville, which recorded $14,870 per capita |
| is the site of one of the world's largest | | | | (though it is easily outstripped in total |
| open pit mines. | | | | revenue by Minneapolis, St. Paul, |
| | | | Bloomington, and Edina). |
| The agricultural community is also strongly | | | | |