Tax & Accounting Blog

Minnesota State Legislature Considering Extending State Sales Tax to Clothing

Indirect Tax, ONESOURCE, Sales and Use Tax January 28, 2013

SpoolsThe Minnesota State Legislature is currently considering two bills that would impose a sales tax on clothing sold at retail. Currently, Minnesota is one of the few states that do not impose sales tax on clothing. Senate Bill 9 would impose sales tax only on clothing items over $200. Senate Bill 11 would repeal the clothing exemption altogether, meaning that all clothing would be subject to tax, regardless of the price.

Bills proposing a sales tax on clothing have previously been introduced in the legislature, but none have managed to gather up enough votes to pass. We will continue to monitor and post updates on these proposals as they make their way through the state legislature.

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