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Governor Not Planning to Broaden Sales Tax

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Mar 8, 2013 at 10:48 am

ST. PAUL, Minn. (AP) - Minnesota Gov. Mark Dayton says he's `99.8 percent certain' he'll abandon a bid to broaden the state sales tax to service transactions, a key revenue element of his proposed budget but also one that provoked protest from the business community.

Dayton said Friday that a business-to-business component was surely gone and he doesn't want consumers to shoulder the new load. He plans to detail other revisions to his budget proposal next week.

The Democratic governor was banking on the sales tax expansion to also to pay for other program spending and tax breaks. By taxing legal, accounting and other services, Dayton was aiming to raise more than $2 billion over the next two years.

Dayton is standing behind his plan to raise income taxes on the wealthy.

Abby Faulkner

Posted By Abby Faulkner

Assistant News Director

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