ST. PAUL, Minn. (AP) — Top Minnesota lawmakers purposely delayed the start of a new sales tax on warehousing services until next April in case they need to revise or undo it before then.
The storage service tax, which doesn’t apply to mini-storage rentals, became a point of dispute in the session’s final days. Senate Majority Leader Tom Bakk said Tuesday that lawmakers will review the tax and its unintended consequences when they return to the Capitol in February.
A new tax on equipment repairs has also stirred up farm country lawmakers. A late fix to exempt farm equipment repairs didn’t get made, but leaders pledged to do that early next year.
The service sales taxes are far more limited than what Gov. Mark Dayton proposed earlier in the year. Aside from warehousing, there are new taxes on commercial equipment repair and telecommunications services. All told, they are expected to generate $315 million in the next two years, money that will be used to provide local governments a sales tax exemption.
The Department of Revenue expects to provide specific details about what is covered by the sales tax expansion before June 1. Most of the service taxes take effect in July.
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