Will Dayton Drop His Clothing Tax Proposal?

ST. PAUL, Minn. (WCCO) — Minnesota retailers are hoping Gov. Mark Dayton will reconsider the part of his budget plan that would tax some pieces of clothing.

“We’re hopeful that we’ll see the clothing tax that was proposed pulled out of his revised budget proposal,” Minnesota Retailers Association president Bruce Nustad said.

Nustad says Dayton has heard protests from businesses, consumers and legislators since floating the idea of putting a tax on clothing sales above $100.

Nustad says broadening the sales tax while bringing down the overall rate isn’t such a bad idea, but not while the economy is still recovering.

Bruce Nustad Interview

“I think he just might recognize that now is not the time to make some of these big changes, but I don’t think he’ll give up on those changes,” Nustad said.

Dayton is not expected to give up on his idea to raise income taxes for the wealthy when he releases his revised budget on Tuesday.

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