Horner sheds new light on Minn. sales tax plan

Published 6:41 am Monday, October 4, 2010

ST. PAUL — Gubernatorial candidate Tom Horner’s hope of raising $1.3 billion more in Minnesota sales tax money depends on making an extra 34 percent worth of purchases subject to the tax.

Rough estimates of the Independence Party nominee’s tax proposal were done by Minnesota’s Revenue Department. Horner hasn’t submitted a full proposal to the agency for an official review. On Monday, his campaign released the estimates the tax agency compiled a week ago.

As governor, Horner says he would try to apply Minnesota’s sales tax to more transactions, such as clothing purchases, haircuts and other services consumers seek. While Horner would broaden the tax base, he says he would cut the actual rate by one percent.

He hasn’t offered a full list of items or services that would lose an existing exemption from the tax. Horner says business-to-business deals such as accounting and advertising wouldn’t be subject to a new tax.

Minnesota is expected to collect about $9.25 billion from the sales tax for its 2012-13 budget.