MN Hospitality Advocate

Can Hospitality Escape this Session Without a Tax Increase?

Posted in Elections, General Advocacy, Restaurant Issues, State Laws, Uncategorized by hospitalityminnesota on May 14, 2010

Given the tremendous budget pressure the legislature has faced throughout the session, now amplified by the unallotment ruling of the Supreme Court, to escape this legislative session without a tax increase would be a major industry accomplishment. With just days to go and a major gap before them, several legislative leaders brought forward the idea of a liquor tax.

Our folks on the inside suggest that this is not likely to happen this year for a couple of reasons. First because Governor Pawlenty has been resolute in his opposition to tax increases. Second, because we believe DFL leadership has liquor in its sights for the coming legislative session next year, when the state faces again a huge budget shortfall and a new governor sits at the State house.

So, though it’s still too early to bring out the cheering squad, we are cautiously optimistic that we escape this session without any statewide lodging, liquor, food or beverage taxes. If we do avoid a tax consider that a tremendous victory for our industry.

What about the impact of this session regarding other areas of operation? Thus far, we’ve managed to fend off virtually all harmful legislation, and to modify those we haven’t defeated, such as ignition interlocks. We’ll be sure to provide an industry wrap up outlining the impacts of the session overall.

David Siegel, CAE, IOM
Minnesota Restaurant, Lodging and Resort & Campground Associations and Hospitality Minnesota

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