Chamber opposes sales tax increase for arts and outdoors
The Minnesota Chamber of Commerce has decided to oppose the proposed sales tax increase that would dedicate funding for the arts and the outdoors. The Chamber and its lobbying heft could play a critical role in defeating the proposal which is on the November ballot. Here's the release:
ST. PAUL - The Minnesota Chamber of Commerce is formally opposed to the proposed constitutional amendment to supplement funding for the state's natural and cultural resources, according to a resolution by its Board of Directors.
Voters will be asked Nov. 4 whether the state's sales tax rate should be increased by three-eighths cent to increase state funding for these programs. Among the beneficiaries would be the Clean Water Legacy Act, a program supported by the statewide business community.
"The amendment is not needed to adequately fund the Clean Water Legacy Act," Chamber President David Olson said. "In addition, the proposal is poor budget policy and a significant business tax increase."
In 2004, the business community and 15 other stakeholders supported a water fee to finance the cleanup of the state's impaired waters, Olson said, but the proposal was rejected by the Legislature. The Chamber also has suggested that all or part of the cleanup could be financed by reallocating existing environmental protection resources. The Minnesota Chamber maintains that these avenues are viable alternatives to the proposed amendment.
Olson also noted that the dedicated money must be in addition to - and not in place of - traditional funding for natural and cultural resources. "The amendment may actually limit the ability of the governor and Legislature to address future budget deficits and other priorities. That's especially important as the state general fund faces a shortfall of between $1 billion and $2 billion for 2010-2011."
Minnesota businesses already face high taxes, Olson said. This measure would only worsen that burden as Minnesota Department of Revenue figures show that businesses pay approximately 45 percent of the state's sales tax. If passed, the amendment would raise business taxes by about $110 million in 2010.
The Minnesota Chamber of Commerce is the state's largest business advocacy organization, representing more than 2,400 businesses of all types and sizes on state public policy and regulatory issues.
Create a More Connected Minnesota
MPR News is your trusted resource for the news you need. With your support, MPR News brings accessible, courageous journalism and authentic conversation to everyone - free of paywalls and barriers. Your gift makes a difference.