Weather Forecast

Close
Advertisement
Gov. Mark Dayton speaks to a Farmfest visitor Thursday, Aug. 8, 2013. Later, Dayton told reporters that he expects to call a special legislative session on Sept. 9 and he wants to investigate to make sure the Vikings owners have not lied to Minnesota in stadium talks. (Don Davis/Forum News Service)

Special session could dump ag tax

Email Sign up for Breaking News Alerts
News Morris,Minnesota 56267 http://www.morrissuntribune.com/sites/default/files/styles/square_300/public/fieldimages/19/0808/0809-n-mcb-xgrspecialsession-dayton-barn.jpg?itok=X-ThHztQ
Morris Sun Tribune
320-589-4357 customer support
Special session could dump ag tax
Morris Minnesota 607 Pacific Avenue 56267

REDWOOD FALLS, Minn. -- Gov. Mark Dayton says he is willing to overturn a new sales tax on farm implement repair when the Legislature next month meets to appropriate money for disaster relief.

Advertisement
Advertisement

Dayton told reporters after he spoke at Farmfest today that he and legislative leaders are looking at a Sept. 9 special session to provide state funding for local governments in 18 counties that were affected by late-June storms and flooding. The money would match federal funds being sent to help local governments rebuild.

While Dayton had insisted that only disaster relief be considered during the one-day session, he said he now is willing to allow lawmakers to overturn the farm tax.

Revenue Commissioner Myron Frans said farmers are paying $2 million a month in the sales tax on farm implement repairs. The tax took effect July. 1.

Dayton called it a bad tax; it was inserted into a bill being debated during the Legislature’s last moments. Other services that are taxed under the new law would not be affected by the special session action, Frans said.

Rep. Paul Torkelson, R-Hanska, was happy with the possibility that the tax will be removed from law.

“They never should have been put in the law in the first place,” Torkelson said.

House Minority Leader Kurt Daudt, R-Crown, said Dayton's reversal in seeking to overturn the tax showed that “just one month after Democrats’ new taxes took effect, they are now admitting Republicans were right."

Torkelson was disappointed that another tax likely will remain on the books until lawmakers return to St. Paul for their next regular session in February. That is a tax on things farmers and businesses store in warehouses.

Since the tax does not begin until April, Dayton said there will be time next year to remove it. Still, he said, if someone comes up with a way to replace revenue obtained with that tax, he could be convinced to include that in a special session agenda.

Advertisement
Don Davis
Don Davis has been the Forum Communications Minnesota Capitol Bureau chief since 2001, covering state government and politics for two dozen newspapers in the state. Don also blogs at Capital Chatter on Areavoices.
Advertisement
Advertisement
randomness