Business group wants three taxes repealed in special session

When the Legislature meets in an expected special session next month the agenda should include the repeal of three new business-to-business taxes, the Minnesota Chamber of Commerce said in a letter to Gov. Mark Dayton today.

Dayton wants to call lawmakers back to St. Paul on Sept. 9 to approve disaster relief for 18 counties hit hard by storms in June. He said yesterday he also wants the special session to exempt farm equipment from a new tax on business equipment repair.

Chamber President David Olson’s letter asks for a repeal of the entire tax on business equipment repair, along with new taxes on warehousing services and equipment purchases by telecommunication  providers. He said the taxes are hurting business and job growth.

“Business must plan ahead and these new taxes are already impacting their decisions,” Olson wrote. “We are aware of situations where expansion plans are now on hold or where companies are considering relocating some or all of their operations to other states.”

Dayton has said a repeal of the warehousing tax can wait until the 2014 session, because it doesn’t take effect until next April.