Government Relations Alert: Adjusting For A Reduced Shortfall, Governor Dayton's Revised Budget Excludes Sales Tax Overhaul


Governor Dayton yesterday unveiled his revised budget for fiscal years 2014-2015. With Minnesota Management & Budget (MMB) recently projecting the FY 2014-15 shortfall at $627 million, down from last November's estimate of $1.1 billion, the Governor was able to make changes to his original proposal released in January. Among those changes are a $296 million reduction in proposed revenue and a $165 million increase in expenditures. An available balance of $8 million remains for the FY 2014-15 revised budget.

Most notably, the Governor excludes the sales tax overhaul included in his original budget. The overhaul would have included a broadening of the sales tax base coupled with a rate reduction, as well as a tax on business-to-business services. The fourth tier income tax still is included in the revised budget, at a rate of 9.85% on taxable income over $250,000 for married joint filers and $150,000 for single filers, and is estimated to bring in $1.1 billion.

The revised budget continues an investment of more than $640 million in education, from funding all-day kindergarten to investing in higher education institutions. An additional investment of $86.5 million is devoted to economic development.

More information on the revised budget is available at the MMB website.


DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Stinson Leonard Street | Attorney Advertising

Written by:


Stinson Leonard Street on:

Popular Topics
Reporters on Deadline

"My best business intelligence, in one easy email…"

Your first step to building a free, personalized, morning email brief covering pertinent authors and topics on JD Supra:

Sign up to create your digest using LinkedIn*

*By using the service, you signify your acceptance of JD Supra's Privacy Policy.

Already signed up? Log in here

*With LinkedIn, you don't need to create a separate login to manage your free JD Supra account, and we can make suggestions based on your needs and interests. We will not post anything on LinkedIn in your name. Or, sign up using your email address.