It has been nice to get back home and spend more time with people in the district since the 2013 legislative session adjourned a week and a half ago.
Local citizens have indicated to me they are disappointed in the $2.1 billion raft of tax increases the legislative majorities and Gov. Mark Dayton enacted this session. I have received a number of inquiries on one specific tax that flew somewhat under the radar on its way to passage. It is a provision in this year’s tax bill that includes a sales tax pertaining to warehousing and repair services.
The impacts of these new taxes appear to be widespread and could prove costly to farmers and the rest of the agriculture industry. They also would put Minnesota businesses at a competitive disadvantage with our neighboring states, something that could bring serious consequences and damage our economy. Click here for more on that subject.
We are still seeking clarification in some areas of these newly passed taxes, but here are some bullet points with what we can determine as of now:
Repair of commercial and industrial equipment
Warehousing and storage services
The capital equipment exemption for equipment purchased by the telecommunications industry is repealed. This includes telephones and other communication services, cable and satellite services.
Repairs and storage and warehousing services are exempt from sales tax for certain entities based on business relationships or entity specific exemptions.
Exemptions based on business relationships:
Exemptions based on specific entity exemptions:
All sales to these groups are exempt unless the exemption explicitly lists an item as taxable.
I opposed these taxes from Day 1. Please continue providing me with input on this issue so we can work to rectify the situation before these taxes take effect in April of 2014.