Jan 15, 2013 at 10:35 am
ST. CLOUD, Minn. (KNSI) - A looming budget shortfall has Minnesota lawmakers revisiting the notion of creating a sales tax on clothing.
The move was introduced in the latest session of the State Legistlature. Supporters of the tax suggest it could help stabilize a state economy that tends to oscillate between surplus and shortage.
Opponents of the tax, like Savers-St. Cloud manager Reba Talberg, say the move will affect sales and profit in a big way - and not just for their own business. Talberg says Savers donates 65% of store profits - after expenses - to the Epilepsy Foundation, and the other 35% to Disabled American Veterans.
She says, by imposing a sales tax, shoppers may not see the store as offering as good of deals anymore. They may also donate fewer old clothes, and the store and benefactors will both suffer.
"We're trying to give deals to people who can't afford to buy new things - people living on one income, students, seniors," Hummerding says. "A tax could add 6 or 7 bucks in taxes. Thrift shoppers may not buy that extra pair of pants or shirt if that happens."
Minnesota is one of only seven states in the country that does not impose a tax on clothing.