New Minnesota warehouse sales tax gets another look - KTTC Rochester, Austin, Mason City News, Weather and Sports

New Minnesota warehouse sales tax gets another look


ST. PAUL, Minn. (AP) -- New guidelines on a state warehouse sales tax are adding fuel to a campaign to repeal it.

Minnesota lawmakers passed the tax seven months ago. It applies to any businesses buying storage or warehouse services from another entity. A business would not be taxed for using its own warehouse.

The Department of Revenue has now issued guidelines on the tax, which is expected to raise more than $95 million over the remainder of the current budget cycle. Taxable services include the storage of documents, coal, hazardous waste, lumber and liquor.

Minnesota Chamber of Commerce tax director Beth Kadoun is working to repeal the tax before it goes into effect April 1. Kadoun tells Minnesota Public Radio News the chamber has heard from companies that won't do business in Minnesota if the tax goes into effect.

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