Senate OKs tax bill to help fund U stadium
With little debate, the senators voted to lower some taxes and raise others, including a sports memorabilia tax, to help fund a Gophers football stadium.
May 11, 2006
Star Tribune
Patricia Lopez and Dane Smith
A bill that would tax sports memorabilia statewide, reduce the marriage penalty for 900,000 Minnesotans, send millions in aid to school districts and local governments and increase taxes on some corporations passed the Minnesota Senate Thursday on a 36-28 vote.
The bill carries the 13-percent statewide sports memorabilia tax that was removed from a Gophers stadium bill when it passed the Senate earlier this week.
The tax would be imposed on all licensed apparel, athletic gear and other sports-logo-bearing merchandise at the wholesale level and is expected to raise retail prices 6 percent.
The memorabilia tax originally had been part of the bill for the $248 million University of Minnesota football stadium but was stripped out before the bill squeaked through the Senate on a two-vote margin earlier this week.
Although the Senate legislation differs dramatically from that of the House, which hasn't even passed a tax bill, Senate Majority Leader Dean Johnson, DFL-Willmar, said that the bill's provisions are popular with the public and that Gov. Tim Pawlenty might be a factor in reaching agreement. He said the tightening of tax laws on corporations is favored by "average people" who think offshore corporations aren't paying their fair share.
The Gophers stadium itself has bipartisan support, but the memorabilia tax has engendered opposition from Republicans and a cool reception from Pawlenty, who has pledged not to impose new statewide taxes or tax increases during his term.
Earlier in the day, after a rally Thursday outside the Capitol attended by about 100 university boosters, including Gophers football players and Tony Dungy, a quarterback for the team in the 1970s and now head coach of the Indianapolis Colts, University of Minnesota President Robert Bruininks said he has been assured by Senate DFL leaders that compromises are available to strike a deal for a Gophers stadium.
But Bruininks added that House and Senate versions of how to pay for the stadium are "miles apart right now" and that the gap could be too wide to close.
"I don't believe it should be a political football at this point," he said of the plan.
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