Dayton Tells TwinWest Chamber He'll Revise His Budget Proposal

On Friday morning, Gov. Mark Dayton told TwinWest Chamber of Commerce members that he will take a business-to-business sales tax plan out of his revised budget next week, according to media reports.

MPR reported the governor "has heard a lot of concerns about his proposal to add sales tax to the services business sell each other."

Last month, a tax policy expert told minnpost.com that extending sales tax to these services—such as accounting, advertising and legal—was not a good idea.

“It is very rare when all economists agree,” said John Spry, a professor of business economics at the University of St. Thomas and an expert on state tax policy. “But I am still trying to find an economist who studies this area who thinks taxing business-to-business services is a good idea.”

According to the Star Tribune, Dayton said earlier this week, "I take seriously the concerns of the business community, a business community that has invested in Minnesota and wants to stay here."

If he removes the business-to-business tax proposal from the budget,families will not receive a $500 property tax rebate, the Star Tribune reported Friday.