Are memberships taxed under Gov. Dayton's plan?
- Blog Post by: Lori Sturdevant
- February 15, 2013 - 12:33 PM
The answer to the question Dave from Owatonna asked about whether Gov. Mark Dayton proposes to tax memberships at service clubs and nonprofit organizations is "it depends."
YMCA, YWCA and Jewish Community Center memberships are on the list of items that would be newly taxed under Dayton's plan, which would also reduce the sales tax rate from 6.875 percent to 5.5 percent.
But memberships in veterans' organizations are expressly excluded on the list that was shared with the Capitol press corps Friday. Revenue commissioner Myron Frans explained that Ys and JCCs are treated as athletic clubs, while veterans' organizations serve communities in ways that the administration prefers not to burden with taxation.
When I was schooled in Capitol coverage years ago, I was taught that Minnesota politicians have great difficulty saying no to this state's military veterans. I'd say that pattern holds.
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