Senate rejects Tax Bill

Senate rejects Tax Bill Click to Enlarge Photo:

Apr 29, 2013 at 5:55 pm

ST. PAUL, Minn. (AP) The Minnesota Senate has rejected a bill with a range of tax increases including higher income taxes on the wealthy.

The DFL-sponsored bill fell by a 34-32 vote.

A handful of suburban Democrats joined minority Republicans in opposing the package.

The bill would have lowered the state's overall sales tax rate but broadened it to some services including haircuts, auto repairs and piano lessons. It also would have bumped cigarette taxes up 94 cents a pack. And it would have done away with the clothing exemption.

It's not clear what's next for the bill. Democratic leaders are conferring behind closed doors.

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