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Dayton: add sales tax to clothes, services

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ST. PAUL, Minn. (AP) — Gov. Mark Dayton is proposing Minnesotans pay a lower overall sales tax rate but that it should be applied to more goods and services, including clothes over $100.

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The budget blueprint Dayton is unveiling Tuesday proposes big changes to the state's sales tax. It would apply the sales tax to some services now exempt, but would continue to exempt food and medical services along with clothing purchases under $100.

More things would be subject to the state sales tax, but its overall rate would drop from the current 6.875 percent down to 5.5 percent under Dayton's proposal. That's a 20-percent decrease, which Dayton's office says is the largest in state history.

They say Minnesota would go from the 7th highest sales tax rate to the 27th highest among U.S. states.

Copyright 2013 The Associated Press.

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