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Fashion Boutique Owner Says Dayton Tax Plan Would Harm Tourism, American Clothing Brands

Ashley Kilcher, the co-owner of the Mendota Heights fashion boutique Roe Wolfe, said the proposed sales tax on items of clothing over $100 would hurt small businesses, American-made clothing brands, and Minnesota tourism.

Gov. Dayton released more specifics last week about how his sales tax plan would affect individual businesses and services.

One the proposed changes to the tax code would be the introduction of a sales tax for clothing items and apparel costing more than $100.

Ashley Kilcher, co-owner of the Mendota Heights fashion boutique Roe Wolfe, said $100 for a luxury item is not a particularly high price point.

"The sales tax increase would negatively impact small businesses, American-made clothing brands and Minnesota tourism," she said. "American made clothing and brands are typically more expensive just because labor costs are more expensive here, so it will affect the brands people are buying."

She said tax free shopping was a large draw for Minnesota tourism.

"There’s a lot of shoppers who come to Minnesota to shop tax free at the Mall of America."

Kilcher said Roe Wolfe would not lower prices in response to the tax hike.

"We would have to see how the sales tax changes affected people’s shopping choices and go from there," she said.

MikeL February 01, 2013 at 02:07 PM
I talked to several co-workers, and it is extremely rare for any one of us to spend over $100 on one piece of clothing.
Carl Baumeister February 01, 2013 at 06:16 PM
Nonsense. Anyone willing to spend over $100 on a single article of clothing is probably not going to go broke paying sales tax on that item. This really is a "luxury" tax, not a "clothing" tax.

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