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Revenue commissioner Myron Frans on business services tax

At the center of Gov. Mark Dayton's proposed expansion of the sales tax in Minnesota is a tax on business to business services, like legal and accounting services. Businesses are concerned that this tax will put them at a competitive disadvantage with businesses in other states. In a hearing Tuesday, Rep. Jennifer Loon, R-Eden Prairie, pointedly asked the commissioner, "What states put a tax on business to business services?" Frans' answer is complicated — 47 states have such taxes, but the actual services taxed vary by state.