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Minnesota's Unreformed Sales Tax.

Author: 
Kudrle, Robert T.

As part of his Big Plan of 2001, Governor Jesse Ventura proposed to change the role of the sales tax in Minnesota, most notably by extending it to a broader range of services while lowering the rate from 6.5% to 6%. The following months saw the governor's sales tax reforms die in the state legislature, and Ventura's attempts to revive parts of the package during the 2002 legislative session failed. Drawing on the experience of other states since the sales tax was first introduced in the 1930s, the author attempts to put Minnesota's use of the sales tax into national perspective to see if the experience of others states can explain the rejection of the Ventura sales tax reform proposals. He evaluates the soundness of the Ventura proposals from a public policy perspective using the standards of equity, efficiency, competitiveness, and revenue. Finally, the author considers what kinds of sales tax changes--if any--can be expected in Minnesota in the future.

Journal: 
CURA Reporter
Publication date: 
2002
Publisher: 
Minneapolis: Center for Urban and Regional Affairs, University of Minnesota.
Sponsor: 
Supported by a grant from CURA's Program for Interactive Research.
Pages: 
32 (4): 9-14.
Online availability
Download from CURA: 
CURA call number: 
Reporter 32 (4)

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