Walz budget would cut statewide sales tax rate, expand tax to many services

Commissioner Paul Marquardt, commissioner of revenue, presented Governor Tim Walz and Lieutenant Governor Flanagan's tax proposals to the Minnesota Senate Tax Committee, outlining a proposal to lower the state general sales tax rate and to extend the tax to additional professional services.

Marquardt told the committee the plan would reduce the statewide general sales tax rate by 0.075 percentage point, from 6.5% to 6.425%, and would broaden the base to include many professional services such as legal, brokerage, banking and accounting services. "This would be the first sales tax rate cut in state history," Marquardt said, and he described the change as paired with base broadening to move Minnesota toward a more service‑oriented tax base.

The governor's package would also preserve existing carve‑outs for specific items and services (for example, legal aid and child tax credits) and would not impose…