The state of Minnesota is considering enacting a tax on clothing.
Clothing purchases currently are exempt from the 6.5 to 8% sales tax, which has been considered a special incentive to draw tourists to the Mall of America. Half of MOA’s visitors are tourists, many coming from neighboring Wisconsin to save money.
One hangup of the proposal is Minnesota’s western neighbor, North Dakota. Their legislature is considering removing the sales tax on clothing, which could draw shoppers from Minnesota and negate any tax benefit.
This bi-partisan idea came from a commission formed by Republican Governor Tim Pawlenty. The Governor says he opposes the sales tax on clothing.
There’s nothing like upping the prices to get people to spend!
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