I guess there's no reason for the state Chamber of Commerce to say "great," or "good job," or "boy, that's good news," but it's just interesting to see how major players in the state are responding to what's clearly -- absolutely clearly -- unadulterated good news for Minnesota. You wouldn't know it reading this news release, which is mainly a sour demand that Dayton and the DFL repeal the B2B taxes, which was already a foregone conclusion.
Legislature should repeal all three B2B taxes as first step in tax relief
The Minnesota Chamber of Commerce renewed its call for the2014 Legislature to repeal all three sales taxes on business-t0-business services, following today’s budget forecast that showed a surplus of $1.08 billion for the two-year budget cycle that began July 1.
“The surplus removes any obstacles for repeal of these B2B taxes. The Governor and Legislators on both sides of the aisle have stated these are bad taxes and have expressed their support for repeal,” President David Olson said. “We ask them live up to their word and act quickly to repeal the three new B2B taxes early in session before they do any more damage to jobs and businesses in key Minnesota industries.”
Eliminating the B2B taxes should be just a first step, given the size of the projected surplus, Olson said. “The Governor and Legislature clearly overcorrected on revenues with the huge increases in taxes. This needs to be fixed immediately. Otherwise, the higher costs on businesses – which translate into higher costs for all Minnesotans – will be a drag on the growth and development of the economy.”
The Minnesota Chamber, as leader of the United for Jobs Coalition, is asking the Legislature to repeal the three taxes early in the 2014 session, which convenes Feb. 25. The coalition represents trade associations and thousands of employers from across the state.
The 2013 Legislature extended the sales tax to three B2B services: repairs of business equipment and machines; purchases of telecommunications equipment by telecommunications providers; warehouse and storage services. The first two taxes went into effect July 1, 2013; the warehouse tax is scheduled to take effect April 1, 2014. Minnesota is in the distinct minority among states that tax these services.
“We continue to hear from businesses that are thinking twice about whether it’s in their best interests to stay and/or expand in Minnesota.” Olson said. “We should repeal these taxes before they further harm Minnesota’s competitiveness and take additional toll on Minnesota jobs.”