Session Daily - produced by nonpartisan Public Information Services
Taxes
Sales tax expansion recommended
published 4/1/2009
Expanding the state’s sales tax to necessities could become reality after a
report from The Governor's 21st Century Tax Reform Commission.
A result of the commission’s report is
HF2263, sponsored by
Rep.
Ann Lenczewski (DFL-Bloomington). The 15-member commission, appointed last
year by Gov. Tim Pawlenty, reported its recommendations to the House Taxes
Committee. No action was taken. (Watch
the meeting.)
Based on those recommendations, the bill would raise cigarette taxes by as
much as $1 a pack and expand the state’s 6.5 percent sales tax to items like
clothing, baby products, textbooks, caskets and burial vaults.
The additional sales tax would help offset almost $1
billion in business tax cuts. Aimed at making Minnesota more competitive, the
corporate income tax would be repealed and businesses would be offered other tax
credits and exemptions.
- Mike Cook