Business leaders, retailers digest Gov. Dayton’s tax initiatives

Author:
Updated:
Original:

Some business leaders are applauding the smaller sales tax rate that's among Gov. Mark Dayton’s proposed tax changes, but many retailers balking the idea to tax clothing above $100 and a range of services that have long been exempt. Dayton also proposes the same strategy with corporate taxes -- lowering the rate, but eliminating many exemptions.

Bruce Nustad, president of the Minnesota Retailers Association, told the Pioneer Press, "We don't like the clothing tax, but we're trying to be judicious and look at the entirety of the proposal." He's also concerned some retailers would find loopholes to avoid the new tax, like selling a right and left shoe separately.

The owner of Heimie's Haberdashery, a high-end clothing store for men in downtown St. Paul, told the newspaper he thinks the proposed tax on clothing is "bogus."

Minnesota Chamber of Commerce Vice President Laura Bordelon told the Star Tribune, "[This] could have a serious impact on job providers as a whole." She applauded the proposed tax on online purchases and the business property tax freeze.

Officials at the Mall of America have also spoken out against adding taxes to clothing and insist it would deter tourists from visiting Minnesota, including international travelers.

Meanwhile, the president of the Duluth Area Chamber of Commerce says he's open to Gov. Dayton’s plan to cut the Minnesota sales tax rate and apply it to more sales items, the News Tribune reports. “It was anticipated, and we see the logic in it,” said David Ross. “The test will be how fairly and equitably it is implemented and applied.”

Next Up

Irv Cross

NFL Pro-Bowler, Twin Cities broadcaster Irv Cross dies at 81

Cross was a Pro Bowl cornerback, but his biggest impact was made after his career.

snow

Here's how much snow fell in Minnesota on Sunday

Some localized areas saw more than expected.

Lindsay Guentzel

For The Week: What's harder than making a meal plan? Sticking to it!

Lindsay Guentzel says you shouldn't give up on your meal planning routines.

snow, plow

Winter storm warnings issued as snow system shifts in Minnesota

The worst of the snow will now hit further north, affecting areas including St. Cloud and the I-94 corridor.

Matt Dumba

Matt Dumba beats the clock to give Wild sixth straight win

Dumba scored as overtime came to a close for another Wild victory.

Karl-Anthony Towns

Bradley Beal terrorizes Timberwolves in loss to Wizards

Beal and the Wizards handed the Wolves their seventh straight defeat.

Marcus Carr / Gopher basketball

Gophers tourney hopes take another blow with loss to Nebraska

Marcus Carr scored a career-high 41 points, but Minnesota is still winless on the road.

Related