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Sales tax confusion

March 3, 2014

If the Minnesota Legislature is indeed interested in making this an “Unsession,” dedicated to cleaning up and clearing up obsolete, confusing and redundant laws on the books, the state’s sales tax......

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Mar-03-14 1:53 AM

When your plumber buys inventory from his supplier, he pays tax and then puts it into inventory. He then marks up the price, installs it and sends you the bill. He does not need to pay into the state, because it was taxed when he bought it.

When you come into his shop to buy a new faucet that you will be putting in yourself, he is then required to buy that faucet without tax, mark it up and then pay into the state based on the marked-up value of the faucet. The confusing part is when he pulls that faucet out of inventory when he already paid tax on it.

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Mar-03-14 2:14 AM

Has anybody heard of New Ulm paying out some $861,000 plus interest to two landowners by the airport? KEYC has it on their web page. I have not seen the Journal cover this. I am curious why I read this in the Mankato media and I hear nothing of it in New Ulm's media.

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Mar-03-14 10:04 AM

The Journal as noted how special interests make the tax code. The best example is the sales tax code. It has be suggested collecting sales tax on internet purchases could pay off the state’s debt for the Viking stadium in two years. The main reason collecting sales tax, on internet not being done, is Minnesota’s very strange sales tax code. Just what is subject to sales tax? Other examples are bottled water if it’s a gallon or more it is not taxable, less than a gallon it’s taxable. An ice cream bar is taxable and 1oz cup of ice cream is not. Will the tax code be made fair? NO! Because not one of the legislators will stand up to the special interests that paid there election cost.

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Mar-03-14 5:08 PM

MCW - Saw that story too. Said 90% of the money would come from FAA.

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