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Health & Fitness

Moving Minnesota Forward

After years of Republican budget gimmicks, shifts and use of one-time money to "balance" the state's budget, Gov. Mark Dayton has proposed an honest budget that will build a better Minnesota.

After years of Republican budget gimmicks, shifts and use of one-time money to “balance” the state’s budget, Gov. Mark Dayton has proposed an honest budget that will build a better Minnesota. 

Gov. Dayton knows that to move Minnesota forward we must invest in areas such as education, workforce development and infrastructure. Not only will individuals prosper but businesses will find continued success in Minnesota. 

To make these investments, Minnesota needs more revenue. The governor has proposed a number of sources for the revenue, including Minnesota’s top wage earners and businesses. 

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While businesses may see some new taxes they will also see a tax rate drop. For example for the construction and labor industry, the following areas will be taxed at 5.5 percent: repair labor to restore tangible personal property so it can be used for its original purpose; architectural services; engineering services; and environmental consulting services. 

The construction and labor industry will see tax rate cut from 20 percent to 5.5 percent for a number of areas. Examples include all materials, supplies and equipment to complete the construction contract (e.g., lumber, pipe, wiring, etc.), and fabrication labor and equipment and machinery used for construction. 

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Construction labor for construction, remodeling or improvement of real property and repair, installation and replacement of real property (such as furnaces and work on plumbing or electrical wiring) will remain exempt from sales tax. 

In the coming weeks, using the governor’s budget proposal and information from the February forecast, legislators will craft a two-year state budget. Let’s show them our support for bold action to make and pay for the investments necessary for Minnesota’s long-term success.

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