4/21/09. Expanding the state’s sales tax to necessities could become reality after a report from The Governor’s 21st Century Tax Reform Commission.
A result of the commission’s report is HF2263, sponsored by Rep. Ann Lenczewski (DFL-Bloomington). The 15-member commission, appointed last year by Gov. Tim Pawlenty, reported its recommendations to the House Taxes Committee. No action was taken. (Watch the meeting.)
Based on those recommendations, the bill would raise cigarette taxes by as much as $1 a pack and expand the state’s 6.5 percent sales tax to items like clothing, baby products, textbooks, caskets and burial vaults.
The additional sales tax would help offset almost $1 billion in business tax cuts. Aimed at making Minnesota more competitive, the corporate income tax would be repealed and businesses would be offered other tax credits and exemptions
