Big Minnesota Surplus Could Lead to Business Sales Tax Repeal

Date: January 14, 2014

As you likely have heard, it is projected the state will now have a billion dollar plus ($1.086 billion) budget surplus for the remainder of the two year budget period.  After the school shift is paid off, which is required by law, it leaves $825 million in projected surplus left.  This good news paves the way to repeal all of the sales tax extensions to business services that never should have been enacted in the first place last year.  The tax bill that majority party members pushed through the legislature was controversial enough and the sales tax extensions were clearly a pile on.  NFIB will strongly push to repeal all of these business-to-business sales taxes that were just enacted last year.  As you may recall, the legislature extended the sales tax to the repair of business equipment, farm equipment, warehouse services and telecommunications equipment purchased by telecommunications companies.

In reaction to this good news, Governor Dayton expressed his support for repealing these new sales tax extensions and personally expressed his opposition earlier to the farm equipment repair sales tax despite the fact that he signed the bill last year.  We appreciate the Governor’s support and will be pushing the other legislative leaders and majority party members to support the repeal of these recently enacted new taxes.


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