Dayton drops new business services tax

Dayton drops new business services tax

Posted in the Robbinsdale Forum

DSM Local

Ankeny, IA

#1 Mar 11, 2013
Gov. Mark Dayton said Friday he is giving up on his idea to add the state sales tax to business-to-business services, according to a report.

Dayton, speaking at the TwinWest Chamber of Commerce Legislative Breakfast in St. Louis Park, said he was scrapping his plan, which would have taxed services such as advertising, legal and accounting services.

The news was tweeted by Brad Meier, president of the TwinWest chamber, who wrote, "Governor Dayton says biz to biz tax will be off the table in revised budget. This a.m. at TwinWest Chamber leg breakfast."

Dayton's comments came about a week after the state reported that Minnesota's projected budget deficit for the next biennium had fallen by 42 percent. The estimate fell from $1.09 billion in November to $627 million at the end of February, meaning the state needs $463 million less in tax increases or spending cuts to balance its budget.

Dayton is preparing to release a new budget proposal based on the new information, but he had said earlier that it wouldn't be fair to get rid of the new business tax while leaving new taxes on consumer items.

His initial budget also greatly expanded the number of business-to-consumer services that would now be assessed sales taxes, such as hair salons. It's not clear whether he also plans to scale back those expansions.

Business groups had protested the idea of the new business services sales tax.

Smart Liberal

“The one and only Smart Liberal”

Since: Aug 12

Former MN Tax Payer

#2 Mar 11, 2013
Hey Libs,

Tell me again how increasing taxes will not impact jobs. Even Gov GoogleyEyes now knows that it will.
DSM Local

Ankeny, IA

#3 Mar 11, 2013
Smart Liberal wrote:
Hey Libs,
Tell me again how increasing taxes will not impact jobs. Even Gov GoogleyEyes now knows that it will.
errr... No he's just afraid that the business community was going to roast him alive
Will Not fly on a 787

Minneapolis, MN

#4 Mar 17, 2013
Dayton's response: mumble mumble mumble...

Tell me when this thread is updated:

Subscribe Now Add to my Tracker

Add your comments below

Characters left: 4000

Please note by submitting this form you acknowledge that you have read the Terms of Service and the comment you are posting is in compliance with such terms. Be polite. Inappropriate posts may be removed by the moderator. Send us your feedback.

Robbinsdale Discussions

Title Updated Last By Comments
News Al Franken's record, sized up (Oct '14) 4 hr pakalolo 81
Al Frankin remains the actual sexiest man alive 5 hr Minnesota miserable 45
Will This Finish Off The NFL? 6 hr Minnesota miserable 14
Will Franken be reelected? 9 hr Minnesota miserable 5
Why is Minnesota so liberal 9 hr cadescove99 8
QB Jameis Winson accused of groping Uber driver Sat Space ace 4
Dimocraps still crying Russia Fri cadescove99 10

Robbinsdale Jobs

More from around the web

Personal Finance

Robbinsdale Mortgages