Minnesota Trucking Jobs Hope Lawmakers Reconsider Warehouse Tax Minnesota trucking jobs have rarely experienced the

a tershock o warehouse taxing! but the latest tax has some "uestioning the latest session# There$s rarely a bad time to correct lawed state tax policy# % &ov# Mark 'ayton and legislators believe that too! they will expand the agenda o the special session 'ayton has said he$d like to call on or about (ept# )# Though its ostensible purpose will be paying or storm recovery! the session should also reverse at least two ill*considered new business taxes enacted in May# 'ayton and '+L majority legislative leaders signaled last week that they do agree! to a point# ,t +arm est! the annual agribusiness air! 'ayton permissible that he avors taking up rescind o a new sales tax on arm e"uipment repairs# Legislative leaders "uickly concurred# The repeal would cost the state general und an estimated -./#0 million during the two*year budget period 1 an a ordable amount! speci ied that the .234 Legislature le t a orecast -50 million balance on the .235*36 biennial books# 7ut 'ayton resists going arther# He says he$d pre er to wait or the .235 Legislature$s normative session! which assembles on +eb# .6! to consider eliminating a new sales tax on warehouse services! now scheduled to go into e ect next ,pril 3! and repairing the budgetary breach that would cause# The governor has shown little interest in altering two other new applications o the sales tax! to business e"uipment repairs and telecommunications e"uipment purchases# 8ach o these is undesirable tax strategy# They build hidden taxes into the ees consumers pay or goods and take a hidden toll on employee compensation in the a ected industries#

That$s true o any tax on business inputs# 7ut the tax set to hit warehouse services in ,pril is worse# Minnesota companies in the business o providing storage and inventory services or other companies 9:third*party logistics;< compete with similar providers in other states# ,dding the 0#/=6 percent sales tax to their prices puts them at a signi icant disadvantage in that competition# Within days o the new tax$s enactment! the >8? o Minnesota$s largest such company! Richard Murphy Jr# o Murphy Warehouses! said his 32)*year*old Minnesota business is considering a move to Wisconsin# Minnesota trucking jobs are looking to crack down the latest warehouse tax! which has many "uestioning their state$s purpose or newly enacted legislation# 7ut in licting serious damage on a ew businesses in order to give others a modicum o relie is neither air nor justi ied# ,nd keeping warehouse irms worrying or six more months about a steep impending tax is not a business* riendly gesture# 7y learning all o the in ormation surrounding the new legislation! Minnesota trucking jobs look to lend a voice to an issue that direly needs it#