Dayton's tax bill could improve fundraising for charities
March 7, 2014 — 4:16pm
Gov. Mark Dayton’s new $1.2 billion supplemental budget calls for tax benefits that could be a big help for charities.
Lost in the much larger tax proposal is small change that would reduce sales taxes that non-profit groups pay to host fundraisers.
“This sales tax exemption is critically important for booster clubs that support our schools, helping raise funds for student enrichment activities like sports teams, chess clubs, and other school groups,” Dayton said.
The state has not adjusted that sales tax exemption for nearly 30 years.
Dayton’s tax plan would also allow people over 70 1/2 to transfer up to $100,000 from their individual retirement accounts to charities and exclude that amount from their income.
The proposal would also make it easier for individuals and businesses to donate food, land and money to charitable causes.
The House and Senate are now considering Dayton's budget plan, with Senate hearings set for next week.