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

more+
less-
more+
less-

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.

 

Topics:  Sales & Use Tax, State Budgets

Published In: General Business Updates, Education Updates, Elections & Politics Updates, Finance & Banking Updates, Tax Updates

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

Don't miss a thing! Build a custom news brief:

Read fresh new writing on compliance, cybersecurity, Dodd-Frank, whistleblowers, social media, hiring & firing, patent reform, the NLRB, Obamacare, the SEC…

…or whatever matters the most to you. Follow authors, firms, and topics on JD Supra.

Create your news brief now - it's free and easy »