MSBA President Responds to Governor Walz's Proposed Tax on Legal Services

Yesterday, Governor Walz introduced a budget proposal that would expand Minnesota’s sales tax to include a range of consumer services, including legal, accounting, banking, and brokerage services. While businesses would be exempt, individuals would be required to pay sales tax on legal services they rely on for personal matters.

This proposal would increase the cost of accessing legal help for Minnesotans—particularly low- and middle-income individuals navigating divorce, child custody, probate, housing, and other critical legal issues. According to Minnesota State Bar Association President Tom Pack, “Legal services are not a luxury—they are often essential to protecting a person’s home, family, and financial security. Imposing a sales tax on those services shifts the burden onto individuals at the exact moment they need help the most and risks placing meaningful access to justice further out of reach.”

If enacted, Minnesota would become a national outlier. Only a small number of states currently tax legal services, and past efforts in states like Florida and Massachusetts were repealed after proving unworkable and harmful to consumers.