Governor's reform commission to discuss 'outdated tax code'

St. Paul, Minn. — The Governor's 21st Century Tax Reform Commission will meet today to discuss how Minnesota's sales tax impacts the state's businesses and its ability to compete with other states.

Gov. Pawlenty formed the commission earlier this year to help fix what he described as an outdated tax code.

Ward Einess is the state's revenue commissioner. He said today's meeting will include discussions on tax exemptions for capital equipment, sales taxes for internet and clothing purchases, and whether the state's 6.5 percent tax rate is becoming uncompetitive.

"It's just basically doing a broad brush overview of our sales tax, and then trying to flag what in the Minnesota sales tax is uncompetitive, what in the sales tax could be changed to make businesses more competitive, to incent businesses to do more capital investment, to incent businesses to do more business here," Einess said.

The commission's final report is due to the governor by December 1.