Skip to main content

Some business, already taxed, praise 'fairness' of Dayton plan


Some business owners have heaped criticism on Gov. Mark Dayton's proposal that more business services be taxed in an effort to raise more money for the state and eliminate a $1.1 billion budget deficit. Under the plan, services provided by the likes of lawyers, accountants and consultants would be subject to a new tax, and Dayton is weathering a hail of protest from them.

But other business owners say the plan brings some fairness to the randomness of state tax rules, the Star Tribune reports. The newspaper notes that under the current system, dog groomers are taxed but not barbers, dry cleaners are taxed but not coin-operated laundromats, and calls to 1-900 numbers but not dating services.

"The lines have been drawn over the years, and they've been relatively arbitrary," Commissioner of the Minnesota Department of Revenue Myron Frans told the newspaper.

Dayton last month outlined a budget proposal that included sweeping tax reform plans. Among them: a lower sales tax rate but broader sales tax on businesses and services, and a slightly lower corporate tax rate.

Next Up

Screen Shot 2021-11-25 at 7.53.37 AM

Another 5,000 lbs. of goldfish removed from Carver County lakes

It all likely stemmed from people dumping their pets into local waters a few years ago.

Rosaleia Shelton

Appeal to find 19-year-old missing from Bloomington

The teen left her home on Monday afternoon.

hospital, emergency room

Deaths of twin fetuses after woman was shot ruled a double homicide

The woman was shot in the abdomen in mid-September.

Payton Willis / Gopher Basketball

Gophers improve to 5-0 with win over Jacksonville

The Gophers are establishing momentum early in the season.

Anthony Edwards

Ant's massive slam leads Timberwolves to fifth straight win

The dunk didn't count, but provided the highlight of the night.

Cam Talbot / Minnesota Wild

WIld arrive late, Cam Talbot stays on point to beat Devils

Despite a 30-minute delay, the Wild picked up a 3-2 victory.

Screen Shot 2021-11-24 at 4.10.54 PM

Appeal to find 35-year-old missing from Oak Grove home

Police say he's not believed to be in danger.

vote, election

7 MN Republicans urge states to audit 2020 election results

There has been no evidence of significant fraud in any single U.S. state.

child vaccine pexels

How many MN kids age 5-11 have received a COVID vaccine dose?

The governor says the state has one of the highest child vaccination rates in the U.S.

police lights

Seven juveniles arrested in connection with stolen vehicles in Woodbury

Woodbury authorities have issued a warning following a spate of auto thefts.

police lights squad car dark - Unsplash

1 dead after driver crashes into stalled vehicle on shoulder

The vehicle stopped on the side of the road was unoccupied at the time.


Some business leaders frustrated with Dayton

Many of Minnesota's business leaders are frustrated with Gov. Mark Dayton for scuttling some of their biggest goals in the legislative session. Dayton closed the book on the session by vetoing a largely Republican-written bill that would have provided property tax relief for small businesses, as well as increasing tax credits for research and development and to those who invest in start-up stage companies.