Home / Knowledge / News / Apparel/Garments / Tom Bakk proposes sales tax expansion to clothing
Tom Bakk proposes sales tax expansion to clothing
Mar '10
Senate Tax Chair Tom Bakk, DFL-Cook, introduced legislation to reduce Minnesota's state sales tax, decrease the state's massive budget deficit, and increase funding for Minnesota schools.

To accomplish this, Sen. Bakk would implement Gov. Pawlenty's 21st Century Tax Reform Commission's recommendation to expand the sales tax base; by eliminating the exemption on clothing beginning July 1, 2010. Minnesota is one of only five states that still carries the exemption.

“Bold ideas require strong leadership,” Bakk said. “This is a bold plan that, if enacted, would: repay schools more than $120 million a year that Gov. Pawlenty captured in his unallotment aid shift; reduce our budget deficit by more than $257 million in 2011; and permanently reduce Minnesota's general sales tax rate from 6.5 percent to 6.25 percent, saving taxpayers and business owners millions of dollars on purchases.”

According to Bakk, for the current biennium only, the new revenue will be used for deficit reduction due to our extraordinarily difficult budget situation. On July 1, 2011,the general sales tax rate would be reduced by .25 percent and the education aid shift would begin to be repaid.

“It is simply unacceptable to make our schools wait an indefinite amount of time to receive their money,” Bakk said. “My bill will begin paying back schools next year, and once that is accomplished, all new revenue raised from the base expansion will be dedicated to further reduce Minnesota's sales tax rate.”

Sen. Bakk introduced the legislation as an attempt to break the logjam at the Capitol. “This is a good, common-sense bill that I hope the governor can support,” Bakk said. “It lowers taxes on individuals and businesses, adds more stability to the state budget; and repays our schools. It's my hope that both education advocates and the state's business community will get behind this bill and help it become law.”

Minnesota State Legislature

Must ReadView All

Textiles | On 22nd Apr 2017

Strong rupee & weak trade to affect textile exporters

Textile and apparel exporters' earnings and EBITDA margins will be...

Textiles | On 22nd Apr 2017

Myntra acquires InLogg

With an aim to strengthen supply chain and logistics, Flipkart-owned...

Textiles | On 22nd Apr 2017

Aditya Birla Group launches new variant Liva Crème

After its successful launch of high quality fabric Liva in 2015,...

Interviews View All

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Sonia Agarwal

‘The terms eco-friendly and organic are common but everyone perceives them ...

Rahuul Jashnani

‘Online economy has changed the whole dynamics of buying habits.’

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

Yash P. Kotak
Bombay Hemp Company

One of the directors of Bombay Hemp Company, Yash P. Kotak, speaks to...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


Letter To Editor

(Max. 8000 char.)

Search Companies

April 2017

April 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.


Browse Our Archives


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search