Minnesota is just one of seven states without a sales tax on clothes. That could soon change as state lawmakers look for ways to erase a billion dollar budget deficit.
The chair of the senate tax reform committee says Minnesota's tax system is stuck in the 1950's and she introduced a couple of bills last week that would tax an item that has been exempt until now. And some retailers aren't happy about it.
Senator Ann Rest hopes passing one of her bills would lower the overall sales tax from 6.8 percent to six percent or lower. The bills will get their first hearings in the Senate tax reform committee on Wednesday.
"Why should you pay a sales tax for a washing machine but not a sweater," said Senator Rest. "We're trying to broaden the tax base and make it fairer to everyone. Lower the rate for everyone."
This isn't the first time Senator Rest has introduced such legislation without much success. As stand-alone bills, they don't have much of a chance of passing, but if one of them makes it into an overall tax reform bill, there's a good chance it could become law.