Tax Bills Take Center Stage


On Thursday of this week, the Senate Tax Reform Division adopted its recommendations for the Senate Omnibus Tax Bill. Much of the attention on that bill focused on the proposed reduction in the State sales tax from 6.875% to 6%. The rate reduction is paid for by broadening the sales tax base to include clothing and a wider array of personal services ranging from haircuts to car repairs, to tattoos. However, the bill does not include expansion of the sales tax to business services as Governor Dayton had originally proposed in his tax plan.

On the corporate tax side, the bill also includes a reduction in the corporate income tax rate from 9.8% to 9%. That reduction is paid for by closing “corporate tax loop holes” such as the tax treatment for foreign operating corporations.

At a press availability this morning, Senate Tax Committee Chair Rod Skoe indicated the bill would be approved by the Senate Tax Committee and sent to the Senate floor the week after next. House leaders and Governor Dayton’s office were not enthusiastic about the Senate tax bill.

On the House side, the House Tax Committee will begin discussion of its Omnibus Tax Bill on Monday at 9:00 am. The House will vote its tax bill to the floor no later than Wednesday of next week. Details of the House Tax Bill will not be available until Monday, but the House bill will include individual income tax increases greater than the 9.85% top rate which has been proposed by Governor Dayton.


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.

© Winthrop & Weinstine, P.A. | Attorney Advertising

Written by:


Winthrop & Weinstine, P.A. 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.