By Rep. Paul Anderson
The end of this week marks an important date for bills working their way through the process in the Minnesota House. Proposed legislation must be heard in at least one committee by Friday. Because of that looming deadline, there could be some long hearings in various committees before then. Bills that are not heard by then cannot be advanced for further action.
My legislation granting a two-year exemption from the state sales tax on the purchase of propane storage tanks is scheduled for a hearing Thursday in the Tax Committee. It has support from the Cooperative Network, an organization representing co-ops in Minnesota and Wisconsin. Coming off this past winter’s dramatic run-up in the price of propane and the accompanying shortage of supply, we need to increase our capacity for storage so more product can be moved in the summer months when prices are usually lower and supplies are adequate.
With the loss of the pipeline terminal at Benson, Minn., we will be relying more heavily on the railroads to bring that supply to us. However, there are issues involved with that scenario as well. So much North Dakota crude oil is being transported by rail to points east and south that the system is being maxed out. Grain elevators and ethanol plants, for example, have to wait longer for empty cars to be delivered so they can ship out their products. The cost of transportation is also increasing, with higher freight rates causing grain shippers, for example, to lower their cash bids to farmers. That freight cost, known as “basis,” usually runs around 30 to 40 cents this time of year, but is now around one dollar per bushel at some locations. Hopefully, with better spring weather, the entire system can become more efficient.
***
It’s interesting to read about what other states are doing in regard to attracting new business, and to see if our state is competitive in that regard. According to the publication BUDGET AND TAX NEWS, lawmakers in Wisconsin are looking to pass around $800 million in tax cuts this year. Like Minnesota, they are anticipating a budget surplus, although it’s not expected to be quite as large as ours. Plans in Wisconsin call for property tax reductions and cuts in income taxes.
Back in Minnesota, still no action from the Senate on the repeal of taxes enacted last year. Gov. Mark Dayton had set a deadline of last weekend for action on federal conformity as folks are filing their income tax returns. With that date passed, it’s becoming less certain that we will repeal those business to business taxes that became effective last year, as well as the new warehousing tax set to take effect next month.
***
Congratulations are in order for the Belgrade-Brooten-Elrosa boys basketball team for winning their second state championship in the past three years. This group of kids and their coaches have done a wonderful job and have represented this area very well. They have also shown excellent sportsmanship, in addition to being good students in the classroom. One can’t ask for more than that. Once again, congratulations, Jaguars!
-30-