St. Paul – State Representative Bob Barrett, R-Lindstrom, today said Governor Dayton’s open call for an alternative to the Democrats’ new warehousing and storage tax is unnecessary. The wildly unpopular and job-killing new tax goes into effect April 1, 2014. Barrett said that with the economy on the upswing and billions in new tax increases under Democratic leadership, the state will not require a replacement for the $90 million warehouse tax if it were to be repealed in a special session. Barrett also explained that Dayton has solutions at his fingertips should he need to find budget neutral alternatives.
“First, Minnesota taxpayers are currently subsidizing out-of-state students attending the University of Minnesota. This creates an unfair playing field for Minnesota families. The state could save $50 million per year by repealing the subsidy keeping U of M non-resident tuition $10,000 to $20,000 lower than what is charged at almost every other major university,” Barrett offered. “The second alternative is to repeal the subsidy for billionaire Vikings owners that allow them to keep their personal resources from being utilized to pay for the new stadium. This would save state taxpayers up to $30 million each year for the next thirty years. Thirdly, repealing the wasteful $90 million appropriation for the new Senate office building—buried in the Democrats’ tax bill in the dark of night—would neutralize what Governor Dayton perceives to be a revenue ‘shortfall.’”
Barrett said that the warehousing tax needs to be repealed immediately in a special session. He does not believe the $90 million will be generated, calling the expectation “this year’s version of the fantasy known as e-pull tab revenue.”
Barrett explained: “The revenue from the warehouse tax will never be realized because it’s a jobs- and business-killer for Minnesota. Everyone knows it. Waiting until after these jobs move out of state before we repeal the tax is foolhardy.”
“The first day companies start using warehouses in Wisconsin, North Dakota, and South Dakota to avoid this tax is the day the projected $90 million tax revenue begins to evaporate,” Barrett continued. “It’s foolish to think that trucks will wait until March before they begin to move product out of Minnesota warehouses, taking jobs and income tax revenue with them. We can see that the damaging effects are already starting. Why take the chance when it means a loss of jobs and the personal income it creates?”
Barrett concluded: “Repeal the tax in a special session, Governor Dayton. Why wait when solutions exist today and the $90 million will not come in after jobs go away? With these solutions, we can put Minnesota ahead of pro-football owners from New Jersey and warehouses in Hudson, Fargo, and Sioux Falls.”
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Rep. Barrett can be reached by phone at (651) 253-6114. He can also be contacted via e-mail at rep.bob.barrett@house.mn, or via U.S. Mail at 287 State Office Building, St. Paul, MN 55155.