sales tax system
Governor Mark Dayton has decided to give up his attempt to change Minnesota’s sales tax system. Minnesota currently has a very high tax rate compared to most states at 6.875%. However, this tax only applies to a narrow selection of products. The state generally only taxes actual products which leaves most services untaxed. As a result, the state only taxes about one third of sales.
Dayton wanted to broaden the tax base while reducing the overall tax rate. However, sharp criticism from state residents and a lack of political cooperation caused Dayton to change his mind. Dayton expressed that he doesn’t have any more plans to revamp the tax code so things will stay the same for the near future as the governor has another 18 months in his term.
Read more at the StarTribune
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