Minnesota

Minnesota, is a U.S. state located in the Midwestern United States. The twelfth largest state of the U.S., it is the twenty-first most populous, with 5.3 million residents. Minnesota was carved out of the eastern half of the Minnesota Territory and admitted to the Union as the thirty-second state on May 11, 1858. Known as the Land of 10,000 Lakes, the state's name comes from a Dakota word for "sky-tinted water". Those waters, together with forests, parks, and wilderness areas, offer residents and tourists a variety of outdoor recreational opportunities.

Nearly 60% of Minnesota's residents live in the Minneapolis-Saint Paul metropolitan area known as the "Twin Cities", the center of transportation, business, industry and education, and home to an internationally known arts community. The remainder of the state consists of western prairies now given over to intensive agriculture; deciduous forests in the southeast, now cleared, farmed and settled; and the less populated North Woods, used for mining, forestry, and recreation.

Minnesota is known for its relatively liberal social and political orientation, and has a high rate of civic participation and voter turnout. Minnesota ranks among the healthiest states, and has a highly literate population. The large majority of residents are of Scandinavian and German descent. The state is known as a center of Scandinavian American culture. Ethnic diversity has increased in recent decades. Substantial influxes of African, Asian, and Latin American immigrants have joined the descendants of European immigrants and the original Native American inhabitants.

Economy

Once primarily a producer of raw materials, Minnesota's economy has transformed in the last 200 years 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. The economy of Minnesota had a gross domestic product of $262 billion in 2008. Thirty-three of the United States' top 1,000 publicly traded companies (by revenue in 2008) are headquartered in Minnesota,including Target, UnitedHealth Group, 3M, Medtronic, 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, and Carlson Companies, the parent company of Radisson Hotels.

The per capita personal income in 2008 was $42,772, the tenth-highest in the nation. 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. White families earned more income than the national average but among the population under age 18, more than 20% of Asians and Hispanics, more than 40% of African Americans and more than 40% of Native American females in Minnesota lived in poverty.

As of January 2010, the state's unemployment rate is 7.3%.

Industry and commerce

The IDS Tower, designed by Philip Johnson is the state's tallest building, 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 1% of the population is employed in the agricultural sector, it remains a major part of the state's economy, ranking 6th in the nation in the value of products sold. The state is the U.S.'s largest producer of sugar beets, sweet corn, and green peas for processing, and farm-raised turkeys. 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% of the country's usable iron ore. 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, Hot Lotto (both multi-state), and Gopher 5.

Energy use and production

The state produces ethanol fuel and is the first to mandate its use, a 10% mix (E10), and a 20% mix (E20) in 2013. There are more than 310 service stations supplying E85 fuel. A 2% 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.

State taxes

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