Minnesota stores may soon have a sales tax on clothingMoorhead, MN (WDAY Tv) -- If you like to head across the river to shop, your days of not paying sales tax on clothes may soon be numbered. Minnesota lawmakers are looking into extending the state's sales tax to include clothing.
By: Kay Cooley, WDAY
Moorhead, MN (WDAY Tv) -- If you like to head across the river to shop, your days of not paying sales tax on clothes may soon be numbered. Minnesota lawmakers are looking into extending the state's sales tax to include clothing.
For owners of Alan Evan's Bridal, building a Moorhead location was a no brainer.
Bayer: "That's exactly why we picked being in Moorhead 15 years ago when we opened up."
That reason, no sales tax...bringing in shoppers from both states.
Hurd: "If I go to buy more expensive things then I might think about coming over here more often."
Bayer: "We do get a nice healthy draw from the North Dakota side knowing that they don't pay a sales tax over here."
In North Dakota, people pay a five to seven percent sales tax on clothing.
And in Minnesota, they may soon have to.
Voxland: "I really would like to keep that sales tax off completely if I could."
Lawmakers are looking at two proposals.. one that would add on tax to any clothing item..the other, just items with a price tag over 200 dollars.
Hurd: "It would affect the more frequent that I would come over here."
With higher price items, like a wedding dress, adding sales tax would tack on about sixty five dollars or more to the final bill.
Bayer: "We figure out that the average wedding party is between 300 and 400 dollars worth of sales tax."
And as Moorhead retailers already struggle to bring shoppers through their doors...they fear the proposed laws will mean even less.
Bayer: "It's very possible it would hurt business if the sales tax was extended on this side of the river."
Hurd: "A lot of people would just stay over in Fargo because there's not much of a selection over here."
Shoppers needed for stores to stay in business.
Voxland says if the sales tax does get extended, he hopes it would lower the state's overall sales tax rate, currently sitting at about 6 point nine percent.