“MN Warehouses Are Under Attack”, according to Jonathan Lamb, president of Lake Superior Warehousing Company, Duluth, “describes the new 6.875% service tax on Minnesota warehouses that, barring repeal, will take effect April 1, 2014.”
This legislation has the potential to have a significant impact on many industrial businesses AND service providers. “Our members are deeply concerned about the potential impact of this new business sales tax on their tenants who provide third party warehousing services, businesses which operate with slim margins and compete across state lines with similar service providers in nearby states with lower overhead costs, such as Wisconsin,” she said. As a result, “The Minnesota Warehouse Association is taking no chances. According to Hausladen, his members are moving ahead, drafting legislation to repeal the tax, which it plans to introduce at a “launch event” July 30 at the Radisson Hotel Roseville.”
Learn more about this activity in this morning’s MN Real Estate Journal published article, “11th HOUR ANTI-COMPETITIVE WAREHOUSING TAX: A BIG LOSER FOR OWNERS OF INDUSTRIAL PROPERTIES…AND FOR MINNESOTA?”, by Stephanie Wolf, NAIOP Minnesota.