Minnesota Chamber calls for repeal of B2B taxes early next session

Businesses around the state should urge the governor and legislators to put the repeal of several new business taxes at the top of the list when the the Legislature convenes in February, said David Olson, president of the Minnesota Chamber of Commerce.

There had been a push by the Chamber and some legislators to repeal some of the business-to-business taxes earlier this month at the special session, but Gov. Mark Dayton and legislative leaders kept the agenda confined to disaster relief.

In a commentary, Olson said three particular taxes should be quickly repealed: taxes on repairs of business equipment and machines, including farm machinery; purchases of telecommunications equipment by telecommunications providers; and warehouse and storage services.

The first two taxes went into effect July 1; the warehouse tax is scheduled to take effect in April, he said.

He noted that Dayton has called for ideas to eliminate unnecessary or redundant laws, rules and regulations and other red tape.

“We’re asking that legislators pledge now to repeal all three B2B taxes. Eliminating the tax on farm repairs is a good start, but it doesn’t go far enough. The repeal should also occur for the thousands of other businesses negatively impacted by these new fixed costs,” he said.

To replace the lost revenue to the state, he said, “There is a current budget surplus plus there’s plenty of opportunity to find $310 million of spending efficiencies in a $38 billion budget.”