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Dayton: Use $1B Surplus to Cut Sales, Income Taxes

Updated: 12/05/2013 9:40 PM
Created: 12/05/2013 1:12 PM WDIO.com

ST. PAUL, Minn. (AP) - Gov. Mark Dayton says Minnesota's newly announced $1 billion budget surplus should be used to repeal three controversial planned sales tax increases and for middle class tax relief.

The first $246 million of the budget surplus that state officials announced Thursday goes to settling remaining IOUs to schools. That leaves $825 million for new tax cuts or spending increases.

Dayton says at a Capitol news conference that $231 million of the surplus should be used to repeal sales tax hikes on farm equipment repairs, telecommunications supplies and commercial warehousing services that are scheduled to take effect next April 1. He says another $205 million should go to middle class tax cuts.

Dayton says he won't propose any new spending at least until after an updated budget forecast in February.

(Copyright 2013 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.)

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