2014 In Review // Local: News, Sports Nat'l: News, Sports, Entertainment, Talkers | Top 20 Most Read Stories 

Local

Dayton Administration Puts Finer Point On Tax Plan

View Comments
(credit: Hannah Foslien/Getty Images)

(credit: Hannah Foslien/Getty Images)

Get Breaking News First

Receive News, Politics, and Entertainment Headlines Each Morning.
Sign Up
Today's Most Popular Video
  1. WCCO Viewers' Choice For Best Chinese Restaurant In MN
  2. Patina Ends Online Sales
  3. 2 MN Colleges Among Best In Nation For Food
  4. CDC Reviews Atlanta Lab Mistake That Exposed Workers To Ebola
  5. It's Boxing Day!

ST. PAUL, Minn. (AP) — Gov. Mark Dayton’s administration is striking back against perceptions that his proposed sales tax expansion would put Minnesota business at a disadvantage when bidding for service contracts in other states.

The Department of Revenue on Friday released updated information on how applying the sales taxes to services would work. Dayton has proposed a significant widening of the sales tax in conjunction with a push to lower the underlying rate from 6.875 percent to 5.5 percent.

The plan has produced howls of protest, particularly from companies that would have to pay sales tax on legal services, accountant contracts and other business-to-business transactions.

Some Minnesota business heads have complained it would hamper their competitiveness when bidding for out-of-state contracts.

The Revenue Department says when the recipient of a service is from out of state no tax is owed. When the buyer and seller are in the state, the tax would apply.

(© Copyright 2013 The Associated Press. All Rights Reserved. This material may not be published, broadcast, rewritten or redistributed.)

View Comments
blog comments powered by Disqus
Follow

Get every new post delivered to your Inbox.

Join 2,566 other followers