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Chamber Calls for Repeal of Business Taxes

The Fargo Moorhead West Fargo Chamber is urging Gov. Mark Dayton and other Minnesota legislators to repeal stifling business-to-business taxes enacted during the 2013 legislative session.

Lawmakers are set to convene on Feb. 25, and The Chamber is urging the repeal of numerous tax law changes that exacerbate the challenging business climate in Minnesota. These new taxes include an increase to individual income taxes, withholding taxes, corporate taxes, sales taxes, estate and gift taxes and cigarette taxes.

One new cost for Minnesota businesses is the expanded sales tax on business-to-business services requiring Minnesota companies to pay the 6.875 percent sales tax on three significant categories of business-to-business services, including:

  • Labor service charges for repair and maintenance of business equipment and machines.
  • Purchases of telecommunications equipment by telecommunications providers.
  • Storage and warehousing services of business-related goods.

These increased costs for businesses create a severe competitive disadvantage for Minnesota businesses and stifles economic growth in the state. Ultimately, the taxes harm employees and consumers through higher prices for goods, lower wages and fewer job opportunities. These additional costs also cripple border cities like Fargo-Moorhead where consumers are lured to the other city that enjoys the fruits of a booming economy.

The Fargo Moorhead West Fargo Chamber is working diligently with the Minnesota Chamber and the United for Jobs Coalition to encourage Gov. Dayton to repeal these business-to-business taxes during the upcoming unsession.

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