Despite repeated attempts, taxes are now off the agenda after Gov. Mark Dayton and the GOP were unable to agree on which of the state’s new business sales taxes should be repealed or how they would make up for the millions of dollars in lost tax revenue.
The two sides met Wednesday and agreed to limit the special session agenda to appropriating state aid for storm-damaged counties in southeast Minnesota. The June storms caused millions of dollars in damage to public infrastructure and prompted a federal disaster declaration for the region. But before the aid money can start flowing, legislators have to sign off on a disaster relief appropriations bill.
Dayton had earlier offered to expand the special session agenda to include repeal of one tax provision — a tax on farm equipment repair he said was erroneously inserted into the $2.1 billion package of tax increases. The state, he said, could cover the $28 million in lost tax revenue out of the general fund.