MN Senate Barely Passes Tax Bill 30 Apr 13

The Minnesota Senate on Monday rejected the sales tax changes its DFL leadership had proposed, before changing its mind and passing the bill a couple of hours later. Senators defeated the tax bill on a 34-32 vote, but after a recess and a DFL meeting behind closed doors the bill passed 35-31. Senate Majority Leader Tom Bakk says there was no “arm twisting,” just some Senators who miscalculated the first time around and thought the bill would pass without their votes. The bill would actually lower Minnesota’s sales tax, but it would raise revenue by extending that tax to many currently exempt services and items. The bill also reduces the corporate tax rate to the state’s lowest level since the 1960?s. Governor Dayton recently abandoned a similar plan to expand a lowered sales tax, and the tax bill the House passed last week leaves the sales tax as is. Now it will be up to a conference committee to work out the differences.