Owning and operating a business involves so much more than a simple exchange of money for goods. One of the complex parts of business transactions involves collecting sales tax imposed by state and local governments.
For business owners, it may feel like tax collection and in a way it is, because the business owner is responsible for passing that tax onto the state. Depending on how a business is structured, the failure to do so could result not only in detriment to the business but tax liens and other personal property. New changes are being proposed every day, and the Minnesota Senate just passed another bill altering the sales tax structure.
The tax bill passed with a vote of 34-32 on Monday afternoon. The bill would increase the sales tax in the state. It passed in the Senate with a very narrow margin and almost didn’t pass at all. In fact, the vote was exactly opposite with 32 in favor and 34 opposed the final result only moments prior to the final passing vote.
According to the single Republican voter, Dave Senjem, R-Rochester, the bills inclusion of $455 million earmarked for the Mayo Clinic was a driving factor in the vote. The legislation would provide $1.8 billion in new revenue to the state.
New legislation means more changes for business owners in Minneapolis and across the state. Should tax problems occur for a business owner, a tax attorney can help remove liens, contest penalties and assist in resolving any tax dispute.
Source: Minneapolis St. Paul Business Journal, “With Mayo millions aboard, Senate passes tax bill,” Mark Reilly, April 30, 2013