Minnesota Trucking Association Blasts Proposed Warehousing Tax

The Minnesota Trucking Association criticized a legislative proposal to put a tax on warehousing services in the state, saying it would harm the state’s economy and kill jobs.

Leaders of Minnesota’s House and Senate have been negotiating on budget legislation this week along with Gov. Mark Dayton (D). Both legislative chambers have included in their recent offers a proposal to extend the state’s 6.5% sales tax to warehousing services.

Neither chamber of the Legislature has approved the measure, and the legislative session ends Monday, said John Hausladen, CEO of the MTA.

“Under the House offer made this morning, warehousing is the only service the sales tax is being extended to,” he said in a statement. “If this tax sticks, Minnesota will be the only state in the entire country to tax warehousing services.”

Though the sales tax is current 6.5%, it could change depending on the final budget language, Hausladen said, warning that the tax could cause major firms that use warehousing services to shift their operations to other states.