January 31, 2013

Minneosta Govenor's budget proposal

Below is a partial list of Governor Mark Dayton's (MN) recent budget proposal.  Granted, this is all part of the negotiation process, but there are some interesting aspects of this propasal that will affect business owners & individuals greatly.


Sales tax rate would be dropped to 5.5% but expanded to include the following items(short list):

  • personal care servces & instruction
  • business services including leagal, accounting, architecture, specialized design, computer, management consulting, advertising, employment, and business support services
  • advertising materials and publications
  • affiliate nexus sales (internet sales)
  • clothing on items over $100
  • direct satellite services and remote access software
  • digital goods
  • auto and other repair services

He also proposes to increase the sales tax by .25 cents in the metro area to pay for transit projects.

Again, this is only a proposal. We will have to wait to see how the negotiating process shakes out. We will know by May. That is when the legislative session ends. 

LFC will keep you posted on further developments.