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Businesses Line Up To Fight Dayton’s Sales Tax Proposal

Businesses Line Up To Fight Dayton’s Sales Tax Proposal

Submitted by • February 8, 2013 www.startribune.com

Gov. Mark Dayton is seeking to collect $2.2 billion in new taxes on sales between companies, but many in the business community say he shouldn't expect to get that much. If approved, the sweeping new levy on business-to-business services will set off a mad dash of firms jockeying to avoid the tax, executives and economists say. Some companies will succeed, cutting into the actual return for Minnesota. One major client has an office in New York state, where it could hire consultants free of sales tax. Customers in Minnesota could shift work from Leonard's business to their own departments.

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