Gov. Dayton backs away from his plan to expand the state's sales tax... what was expected to be a huge revenue driver for his budget this year.
A better than expected February budget forecast means additional tax dollars from business-to-business transactions won't be as necessary, though some of the other proposals in Dayton's budget, like the property tax refund and increased education funding may take a hit.
Business owners, meanwhile, are breathing a sigh of relief.
Dave Kruse of Sunstone Creative Group says, "Honestly, fro our perspective, it was a stupid tax to begin with. It would have been something we would have to eat from the onset. Eventually, it's a tax that we have to pass on to our consumers, and ultimately on to their consumers. It just doesn't work for anybody."
The sales tax expansion was expected to bring in more than $4 billion over the next biennium.