Minnesota: Extending Marriage to Same-Sex Couples Could Add $42 Million to State Economy and $3 Million in State and Local Tax Revenue

For Immediate Distribution
April 15, 2013

Laura Rodriguezlrodriguez@rabengroup.com, (310) 956-2425
Lee Badgettbadgett@law.ucla.edu, (310) 904-9761
Angeliki Kastaniskastanis@law.ucla.edu. (310) 794-6193

LOS ANGELES—Extending marriage rights to same-sex couples in Minnesota would bring an estimated $42 million to the state and local economy, according to a study released by Angeliki Kastanis, Williams Institute public policy research fellow and M.V. Lee Badgett, Williams Institute research director and professor of economics at the University of Massachusetts, Amherst.

“Marriage equality creates a measurable economic boost for the jurisdictions that enact it,” said Badgett. “But if states don’t use it, they may lose it.  A constitutional amendment banning same-sex marriage in Minnesota means that many of these wedding-related expenditures will be made elsewhere.”

According to the 2010 U.S. Census, 10,207 same-sex couples live in Minnesota.  Of those couples, 50% or 4,946 marriage license will be issued within the first 3 years after the passage of marriage equality, a pattern that has been observed in Massachusetts and elsewhere.  Of the couples that will marry during the first three years, 64% of those marriages will occur during the first year, 21% in the second year and 15% in the third year.

In the first three years of extending marriage to same-sex couples, the study estimates that:

• The state’s wedding and tourism business would see spending rise by $42 million, including $28 million in additional wedding spending and $14 million in tourism expenditures made by out-of-town guests.

• Total state and local tax revenue would rise by $3 million, including an estimated $128,000 in local taxes. $2 million of this would occur in the first year.

• The boost in travel spending will generate approximately 283 jobs in the state.

This report does not include spending estimates for out-of-state same-sex couples that might travel to Minnesota to marry.  As was seen after marriage for same-sex couples was legalized in Iowa, same-sex couples from neighboring states that do not allow same-sex couples to marry may to travel to Minnesota and generate additional spending on wedding and tourism-related goods and services.

Click here for the full study.

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