Governor Pulls B2B from his Proposal But Threat Remains
Governor Mark Dayton announced that he is dropping his proposal to extend the sales tax to business-to-business (B2B) transactions. We appreciate the Governor's change of course as this proposal would have had serious consequences for Minnesota trucking companies and their service providers.
However, B2B taxes have not been totally ruled out by legislative leadership. Like a horror movie script, the zombie is never dead until the movie ends (or in this case, the legislature adjourns).
Now is not the time to relax. Our Truck to the Capitol comes at the perfect time to reinforce how B2B sales taxes would be on the trucking industry.
The Governor has indicated that he will submit a revised budget week of March 11. A continued concern is the Governor's proposal to create a fourth tier in personal income tax rates. Many trucking companies flow their income through the personal income tax. This tax increase will undermine their ability to invest in their employees and companies.
Truck to the Capitol attendees will address two other critical issues facing Minnesota: independent contractor definition and transportation funding.
Trucking Industry is Under Attack
Recent legislative activity has made one thing clear: the trucking industry in Minnesota is under attack.
- Some legislators still favor taxing business to business services, which could include trucking services which could favor carriers based outside of Minnesota.
- Extending the sales tax to business-to-business services would drive up operating costs.
- An additional 4th tier of income tax will threaten the viability of the Subchapter S model for trucking companies.
- Fees and taxes to fund transportation are BOTH increased and expanded, giving local governments more "tools" to collect money.
- Organized labor threatens to functionally eliminate the ability to be an independent contractor in the trucking industry.
Opposing Increased Taxes
The MTA has joined with hundreds of other organizations and businesses to oppose increased taxes by forming United for Jobs. Along with a toolkit developed by the coalition, the MTA has prepared other useful materials.
Overview of Governor’s Budget - Read more to learn about the updated Governor’s budget.
Sales Tax Impact Worksheet - Calculate how much Governor Dayton’s budget proposal will cost you and your customers.
2013 Budget Toolkit - Contains a number of useful tools to communicate with your employees, customers and elected officials.
Trucking Testimony - Learn more about the impact of the Governor’s proposal by viewing or reading the testimony provided to the House Tax Committee on February 27.
News Coverage of Trucking Opposition - Read the latest news regarding the MTA’s opposition to the governor’s proposal.
Contact Your Legislator - Locate who represents you in St. Paul and send them a message.
“How to Meet with Your Legislator” Training Video - Watch this 11 minute video to prepare for your visit.
MTA Policy Positions - Learn more about the MTA’s position on a wide variety of issues impacting the Minnesota trucking industry.