Repealing the Warehouse Tax 01 Jul 13

State Chamber Representatives in Thief River Falls last month called it one of the worst of the business to business taxes enacted during the 2013 Legislative Session.

The new 6 and a half percent Warehouse Tax, to become effective in 2014, could potentially affect DigiKey and other Northwestern Minnesota business and now some law makers are calling for a special session to consider its repeal.

Representative Tim Kelly of Red Wing says it’s already halting business activity in Minnesota and he says the state cannot wait a year to fix what he called “this end-of-session mistake.”

Only Governor Dayton can call a special session and the idea is not finding favor with the Speaker of the House, Paul Thissen, who says the public has experienced enough special sessions in past years, saying we do not need another.

According to Chamber representatives in Thief River Falls late last month, the tax is charged to businesses warehousing property and inventory off site, and does not apply to on-site storage or residential mini-storage units.