1. Minnesota Taxes in Comparison

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3. © 2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity (“KPMG International”). All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (“KPMG International”), a Swiss entity. 44116CHI State –Local Tax Mix: Minnesota v. U.S. 2 Relatively less reliance on property tax 29 percent vs. 33 percent Relatively less reliance on general sales taxes 19 percent vs. 23 percent Relatively greater reliance on personal income taxes 29 percent vs. 21 percent

4. © 2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity (“KPMG International”). All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (“KPMG International”), a Swiss entity. 44116CHI State-Local Tax Mix: Minnesota vs. Great Lake States 3 Relatively less reliance on property taxes 30 percent vs. roughly 40 percent in Illinois, Michigan and Wisconsin; Minnesota has least reliance in the region Relatively less reliance on general sales taxes 19 percent vs. 25 percent in Indiana, Iowa, and Michigan; Wisconsin and Illinois about equal to Minnesota Relatively greater reliance on personal income taxes 29 percent vs. 17 percent in Illinois and Michigan; Minnesota is highest with Indiana, Iowa and Wisconsin at about 25 percent

5. © 2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity (“KPMG International”). All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (“KPMG International”), a Swiss entity. 44116CHI Minnesota vs. U.S. 4 State taxes only – Compared to the U.S. Sales tax reliance – 26 percent vs. 31 percent Personal income tax reliance 40 percent vs. 35 percent Local taxes only – Compared to the U.S. Property tax reliance – 93 percent vs. 74 percent Sales tax reliance – 2 percent vs. 11 percent State taxes only – Compared to the Great Lakes Property taxes – 4 percent; only Michigan also has state property tax General sales tax – 25 percent is lowest in the region; 40 percent in Indiana and Michigan Personal income taxes – 41 percent (highest along with Wisconsin) Local taxes – Compared to the Great Lakes Minnesota is the highest; Illinois, Iowa and Wisconsin share sales

6. © 2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity (“KPMG International”). All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (“KPMG International”), a Swiss entity. 44116CHI Tax Burdens: 1977 – 2009 [Taxes as Percent of Personal Income] 5 State – Local Taxes 1977 – 2002 – Minnesota generally exceeds U.S. average and other states in the region (except Wisconsin) by considerable margin 2005 – 2009 – Minnesota runs steady at about 10.8 percent of personal income; effectively equal to U.S. average and near the middle of Great Lakes States State Taxes Only Minnesota at roughly 8.0 percent of personal income consistently above U.S. average (6.0 percent) and at highest among states in the region

7. © 2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity (“KPMG International”). All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (“KPMG International”), a Swiss entity. 44116CHI Structural Characteristics 6 Corporate Income Tax Tax rate is relatively higher: 9.8 percent vs. 6.0 – 8.0 percent (roughly) Personal Income Tax Tax rate is generally higher 7.5+ percent (equivalent to Wisconsin), compared to flat rates in Indiana and Illinois. Phase-out of exemptions and deductions has substantial effect General Sales Tax Rate is near the upper end of the region Base with food and clothing exempt is relatively more narrow Tax relatively large number of services – most of which are classified as services Likely tax manufacturing equipment and utilities a bit more as well as other business inputs

8. © 2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity (“KPMG International”). All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (“KPMG International”), a Swiss entity. 44116CHI State-Local Tax Mix: Minnesota and U.S. Percentage Distribution of State and Local Taxes -- 2009 Source: Bureau of the Census

9. © 2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity (“KPMG International”). All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (“KPMG International”), a Swiss entity. 44116CHI State – Local Tax Mix: Upper Midwest Percentage Distribution of State and Local Taxes in Selected States – 2009 Source: Bureau of the Census

10. © 2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity (“KPMG International”). All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (“KPMG International”), a Swiss entity. 44116CHI State Tax Mix: U.S. and Minnesota Percentage Distribution of State Taxes -- 2009 9 Source: Bureau of the Census

11. © 2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity (“KPMG International”). All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (“KPMG International”), a Swiss entity. 44116CHI Local Tax Mix: U.S. and Minnesota Percentage Distribution of Local Taxes – 2009 10 Minnesota Source: Bureau of the Census

12. © 2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity (“KPMG International”). All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (“KPMG International”), a Swiss entity. 44116CHI State Tax Mix: Upper Midwest Percentage Distribution of State Taxes in Selected States – 2009 11 Source: Bureau of the Census

13. © 2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity (“KPMG International”). All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (“KPMG International”), a Swiss entity. 44116CHI State-Local Tax Burden Over Time State-Local Taxes as Percent of Personal Income – Various Years 12 Source: Bureau of the Census

14. © 2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity (“KPMG International”). All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (“KPMG International”), a Swiss entity. 44116CHI State Tax Burden Over Time StateTaxes as Percent of Personal Income – Various Years 13 Source: Bureau of the Census

15. © 2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity (“KPMG International”). All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (“KPMG International”), a Swiss entity. 44116CHI Corporate Income Tax Features 14 MinnesotaIllinoisIndianaIowaMichiganWisconsin Rates 9.8%9.5% 8.5% (8.0% on 7/1/12) 6.0-12.0%6.0%7.9% Combined Reporting Required Yes No (DoR Authority) NoYes NOL Carryback -0- NOL Carry Forward 15 -0- (Suspende d to 2014) 20 1015 Sales Factor 93% (100% in 2014) 100% Sourcing Services Market COPMarket Source RIA Checkpoint

16. © 2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity (“KPMG International”). All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (“KPMG International”), a Swiss entity. 44116CHI Personal Income Tax Characteristics 15 MinnesotaIllinoisIndianaIowaMichiganWisconsin Rates 5.35% - 7.85% 5%3.4% 0.36% - 8.98% (Fed Tax Deduct) 4.35% 4.6%- 7.75% Starting point Federal Taxable Federal AGI Personal Exempt Same as Fed. with addback $2,000 $1,000 / $1,500 (depend. child) $40 Credit$3,700$700 Standard Deduction Same as Fed. with addback N/A $4,460 (MFJ) N/AVariable Source: RIA Checkpoint

17. © 2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity (“KPMG International”). All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (“KPMG International”), a Swiss entity. 44116CHI Sales Tax Characteristics 16 Minnes ota IllinoisIndianaIowaMichiganWisconsin Rate (State) 6.875%6.25%7%6% 5% Food Exempt Yes Taxed at 1% Yes Mfct. M&E Equipment No (Some refunds) Yes Mfct. Utilities Exempt No. of Services Taxed (FTA) 661794 2676 Local Sales Taxes 23 entities (1% max) 320 entities (2.75% max) -0- 200+ entities (1% max) -0- 71 entities (0.5% max) SST Member YesNoYes

18. © 2011 KPMG LLP, a Delaware limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative, a Swiss entity (“KPMG International”). All rights reserved. KPMG and the KPMG logo are registered trademarks of KPMG International Cooperative (“KPMG International”), a Swiss entity. 44116CHI 17 Presenter Harley Duncan Washington National Tax Managing Director hduncan@kpmg.com202-533-3254