Sexton glad to have extended entity tax

Coffee with Tom Sexton took place at the Waseca Chamber of Commerce on Friday, June 19 over the noon hour.

 

Waseca City Planner Carl Sonnenberg asked Representative Sexton, “Any thoughts on what might break the log jam on local sales tax opportunities?”

 

Sexton replied, “A lot of business owners, especially small business owners, wanted us to keep from expiring was the Pass-Through Entity Tax, which allows them to file their taxes through their business.” Sexton explained the law results in paying less in federal taxes. In part thanks to Sexton, this program was extended through 2028.

 

Sexton then spoke about corporate tax problems in Minnesota. “We’re sitting at 9.8 corporate tax, but you look at Sioux Falls South Dakota, they’re at zero and they’re growing like gang busters. Iowa is less than us and they’re really growing. Very traditional Minnesota companies are now looking to other states to expand, it’s not sustainable what we’re doing.”  

 

For the first quarter, Sexton says there were 345 million less in claims this year compared to last, suggesting those who might’ve been making fraudulent claims held off this year.

 

Sexton emphasized it is important for the new Minnesota Office of Inspector General to stay independent under the executive branch. It cannot be influenced by the commissioners or the governor. The budget is around $27 million, allowing for a fairly sizable staff. 

 

Sexton spoke about the federal government’s current investigation into Minnesota fraud. He said the investigation is not only uncovering fraud involving federal funds, but state money as well. 

 

The annual conference of mid-western states to include Canada will match up with our State Fair this year and will include visitors from Illinois, Wisconsin, North and South Dakota, Alberta and some of the other Canadian provinces.

 

One guest asked about potentially losing any Republican seats in the upcoming election. Sexton made reference to Erica Schwartz, who represents District 18A in south-central Minnesota, encompassing Nicollet County and parts of Blue Earth and Le Sueur Counties. Said Sexton, “St. Peter has always been a challenging area, so we’ll see if she can hold on to it.” Sexton continued talking about Winona which recently had Gene Pelowski of the DFL step down after 38 years in 2024, leaving room for Republican Aaron Repinski to nab that seat in District 26A, “Winona was held for a long time by Pelowski. Aaron Repinski is working really hard to hang on to that seat. He did a great job of getting elected and does a lot in his community. He’s in the fire department and does a lot of volunteer work.”