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Associated Press, Published April 29 2013

Minn. Senate to vote on clothing, income tax hikes

ST. PAUL — Minnesota's Senate is debating a bill that repeals the state's long-standing sales tax exemption on clothes and increases income taxes on wealthier people.

The Senate is holding a Monday afternoon session to debate and vote on its tax bill. The sponsor, Democratic Sen. Rod Skoe (SKOY'), says wealthier people pay less in taxes as a percentage of total income.

The bill lowers the state's overall sales tax rate but broadens it some services including haircuts, auto repairs and piano lessons. It also increases the state cigarette tax by 94 cents a pack.

Republicans say many of the tax hikes will end up falling on people with less ability to afford it.

The Senate bill differs from proposals by Gov. Mark Dayton and House Democrats and conference committee will be next.

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Copyright 2013 The Associated Press.