Skip to main content

Dayton dumps sales tax proposals

  • Author:
  • Updated:
    Original:

Under heavy fire from corporations in the state, Minnesota Gov. Mark Dayton has withdrawn his proposal that the state tax services that businesses sell each other, MPR reported.

And Dayton said he is very likely to scrap his proposal that the state tax more services, like haircuts, that businesses charge consumers, the Associated Press reports.

The governor made the announcement at the TwinWest Chamber of Commerce meeting in St. Louis Park on Friday morning, local media reported. From MPR:

Dayton unveiled the "business-to-business" proposal as part of a sweeping tax and budget reform plan, and weathered storms of criticism from business leaders. The governor had proposed new taxes on professional services, including accounting, public relations and legal services.

Without the business services tax, Dayton won't have the money he wanted for a proposed $500-per-family property tax rebate, the Star Tribune reported.

Dayton is retooling his budget proposals in light of a new state economic forecast that predicts a $627 million deficit over the next two years, much less than the $1.1 billion deficit forecast from November. Dayton in January had used the larger figure to make a case for his new tax proposals.

Next Up

Screen Shot 2022-05-21 at 5.46.37 PM

Video shows officers ended pursuit before fatal crash in Anoka

The crash occurred when the driver fled police during an attempted traffic stop in Coon Rapids.

Eli Hart

6-year-old Eli Hart identified as boy found dead in car trunk

The kindergartner's father was trying to get full custody of his son.

IMG_3509

Boy found dead in trunk of car in Mound was kindergartner

"It is horrifying and difficult to process a tragedy of this magnitude, especially in our close-knit community," the superintendent wrote.

Minneapolis police

Man found yelling for help after being shot in Minneapolis

The shooting occurred on the 800 block of Elwood Avenue North at around 9:15 p.m.

Screen Shot 2022-05-21 at 9.56.21 AM

Minneapolis North principal says she was fired, district says otherwise

“MPS requires schools to follow protocols in times like that and I did not,” Friestleben said.

Kris Richard Severin

Inmate who escaped Minnesota prison is captured

The inmate escaped Wednesday morning.

Brave New Comedy Workshop in downtown Minneapolis.

Brave New Workshop cancels shows due to COVID-19 cases

The shows were scheduled for Friday and Saturday at the Brave New Workshop Comedy Theatre.

Austin Retterath

Body of missing U of M student found in Mississippi River

Austin Retterath was last seen alive in the morning hours of May 8.

"Love" mural seen in St. Paul.

Summer mural events to bring together community, shine light on MN artists

The 2022 Chroma Zone Mural & Art Festival will take place this weekend in St. Paul's Creative Enterprise Zone, with ensuing events happening this summer.

14869-Manitou-Road-NE-Prior-Lake-MN-55372-6110268-image37

Gallery: Remodeled lakeside home in Prior Lake on market for $2.8M

It offers privacy at the end of a dead-end road fronting onto Lower Prior Lake.

golden valley police department

Carjacking outside ice arena in Golden Valley under investigation

Golden Valley PD confirmed it received a report of a carjacking Monday evening.

Related