Economy

Main article: Economy of Minnesota

See also: List of Minnesota locations by per capita income

Once primarily a producer of raw materials, Minnesota's economy has transformed to emphasize finished products and services. Perhaps the most significant characteristic of the economy is its diversity; the relative outputs of its business sectors closely match the United States as a whole.^[71] The economy of Minnesota had a gross domestic product of $262 billion in 2008.^[72] In 2008, thirty-three of the United States' top 1,000 publicly traded companies (by revenue) were headquartered in Minnesota,^[73] including Target, UnitedHealth Group, 3M, General Mills, U.S. Bancorp, Ameriprise, Hormel, Land O' Lakes, SuperValu, Best Buy and Valspar. Private companies based in Minnesota include Cargill, the largest privately owned company in the United States,^[74] and Carlson Companies, the parent company of Radisson Hotels.^[75]
The per capita personal income in 2008 was $42,772, the tenth-highest in the nation.^[76] The three-year median household income from 2002 to 2004 was $55,914, ranking fifth in the U.S. and first among the 36 states not on the Atlantic coast.^[77]
As of January 2015, the state's unemployment rate was 3.7 percent.^[78]

Industry and commerce

The IDS Tower, designed by Philip Johnson, is the state's tallest building,^[79] reflecting César Pelli's Art Deco-style Wells Fargo Center

Minnesota's earliest industries were fur trading and agriculture. The city of Minneapolis grew around the flour mills powered by St. Anthony Falls. Although less than one percent of the population is now employed in the agricultural sector,^[80] it remains a major part of the state's economy, ranking sixth in the nation in the value of products sold.^[81] The state is the U.S.'s largest producer of sugar beets, sweet corn, and green peas for processing, and farm-raised turkeys. Minnesota is also a large producer of corn and soybeans.^[82] Minnesota has the most food cooperatives per capita in the United States.^[83] Forestry remains strong, including logging, pulpwood processing and paper production, and forest products manufacturing. Minnesota was famous for its soft-ore mines, which produced a significant portion of the world's iron ore for over a century. Although the high-grade ore is now depleted, taconite mining continues, using processes developed locally to save the industry. In 2004, the state produced 75 percent of the country's usable iron ore.^[82] The mining boom created the port of Duluth which continues to be important for shipping ore, coal, and agricultural products. The manufacturing sector now includes technology and biomedical firms in addition to the older food processors and heavy industry. The nation's first indoor shopping mall was Edina's Southdale Center and its largest is Bloomington's Mall of America.
Minnesota is one of 42 U.S. states with its own lottery; its games include Powerball, Mega Millions, Hot Lotto (all three multi-state), Northstar Cash and Gopher 5.

Energy use and production

Minnesota produces ethanol fuel and is the first to mandate its use, a ten percent mix (E10).^[84] In 2005 there were more than 310 service stations supplying E85 fuel, comprising 85 percent ethanol and 15 percent gasoline.^[85] A two percent biodiesel blend has been required in diesel fuel since 2005. As of December 2006 the state was the country's fourth-largest producer of wind power, with 895 megawatts installed and another 200 megawatts planned, much of it on the windy Buffalo Ridge in the southwest part of the state.^[86]

State taxes

Minnesota has a progressive income tax structure; the four brackets of state income tax rates are 5.35, 7.05, 7.85 and 9.85 percent.^[87] As of 2008, Minnesota was ranked 12th in the nation in per capita total state and local taxes.^[88] In 2008, Minnesotans paid 10.2 percent of their income in state and local taxes; the U.S. average was 9.7 percent.^[88] The state sales tax in Minnesota is 6.875 percent, but there is no sales tax on clothing, prescription drug medications, some services, or food items for home consumption.^[89] The state legislature may allow municipalities to institute local sales taxes and special local taxes, such as the 0.5 percent supplemental sales tax in Minneapolis.^[90] Excise taxes are levied on alcohol, tobacco, and motor fuel. The state imposes a use tax on items purchased elsewhere but used within Minnesota.^[89] Owners of real property in Minnesota pay property tax to their county, municipality, school district, and special taxing districts.