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<p class="MsoNormal" style="margin: 0in 0in 10pt;"> <b><big><big><big><big><span
style="line-height: 115%; font-family:
"Corbel","sans-serif";
font-size: 11pt;"><font color="#000000">Business
voice fuels repeal of business taxes<o:p></o:p></font></span></big></big></big></big></b></p>
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<span style="line-height: 115%; font-family:
"Corbel","sans-serif";
font-size: 11pt;"><font color="#000000">By William
Blazar<o:p></o:p></font></span></big></big></big></big></b></p>
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<span style="line-height: 115%; font-family:
"Corbel","sans-serif";
font-size: 11pt;"><font color="#000000">Minnesota
businesses, take a collective bow: The onerous
sales taxes enacted last year on
business-to-business transactions are history.
Elected officials clearly heard the message from
our United for Jobs Coalition: Enough is enough.
Don’t make it any more expensive to do business in
Minnesota.<br>
<br>
The Legislature and Gov. Mark Dayton repealed the
taxes in one of the first major actions of the
session. The swift action is a testimonial to the
messages delivered by companies of all types and
sizes across the state. Your voices were heard as
the Minnesota Chamber of Commerce partnered with
local chambers, trade associations and hundreds of
individual businesses to apply a full-court press
at the Capitol.<o:p></o:p></font></span></big></big></big></big></b></p>
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<span style="line-height: 115%; font-family:
"Corbel","sans-serif";
font-size: 11pt;"><font color="#000000">The 2013
Legislature extended the sales tax to three B2B
services: repairs of business equipment and
machines; purchases of telecommunications
equipment by telecommunications providers;
warehouse and storage services. The negative
impact of these taxes was underscored in media
across the state.<o:p></o:p></font></span></big></big></big></big></b></p>
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<span style="line-height: 115%; font-family:
"Corbel","sans-serif";
font-size: 11pt;"><font color="#000000">The TwinWest
Chamber of Commerce and Minnesota Precision
Manufacturers Association invited legislators to a
tour of Cass Screw Machine Products in Brooklyn
Center. “We don’t want this to be held up as a
bargaining chip,” said Steve Wise, company
president. “I have five buildings full of
machines. This (tax) is going to cost me at least
$12,000 more a year.”<o:p></o:p></font></span></big></big></big></big></b></p>
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<span style="line-height: 115%; font-family:
"Corbel","sans-serif";
font-size: 11pt;"><font color="#000000">The Duluth
Area Chamber of Commerce, along with
representatives of Hallett Dock Co. and ME Global
Inc., met with the Duluth News Tribune. ME
Elecmetal, which owns the Duluth foundry, spent
$24 million to expand the facility, noted
President Andy Fulton. “These laws weren’t in
effect. If I were to do it today, I couldn’t do as
much.”<o:p></o:p></font></span></big></big></big></big></b></p>
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<span style="line-height: 115%; font-family:
"Corbel","sans-serif";
font-size: 11pt;"><font color="#000000">The Marshall
Area Chamber of Commerce and Ralco, a local
manufacturer, advanced the message. Ralco is
committed to Marshall, said Brian Knochemus,
company vice president. But, he added, “It (the
tax) really impacts our appetite for investment.”<o:p></o:p></font></span></big></big></big></big></b></p>
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<span style="line-height: 115%; font-family:
"Corbel","sans-serif";
font-size: 11pt;"><font color="#000000">The Brainerd
Lakes Chamber and CTC Telecommunications told
their story. “The sales tax works against the
governor’s own plan to improve download speeds for
all Minnesota residents and businesses by 2015,”
said Kristi Westbrock, chief operating officer.<o:p></o:p></font></span></big></big></big></big></b></p>
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<span style="line-height: 115%; font-family:
"Corbel","sans-serif";
font-size: 11pt;"><font color="#000000">The Dakota
County Regional Chamber of Commerce and Strategic
Warehousing in Eagan quantified the impact of the
taxes: jobs lost to Iowa. “A repeal can’t come
soon enough,” said Kathy Forester, company general
manager. “It won’t undo what’s been done, but it
can stop the bleeding.”<o:p></o:p></font></span></big></big></big></big></b></p>
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<span style="line-height: 115%; font-family:
"Corbel","sans-serif";
font-size: 11pt;"><font color="#000000">The
Minnesota Chamber welcomes the repeal of the B2B
taxes – and we view it as just the first step.
Minnesotans are just beginning to feel the impact
of the more than $2 billion in new taxes passed
last year, which fell disproportionately on small
and medium-sized businesses. The state’s projected
budget surplus of $2.3 billion affords additional
opportunity to pass tax relief that will keep
Minnesota businesses competitive with our peers.<o:p></o:p></font></span></big></big></big></big></b></p>
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<span style="mso-bidi-font-weight: normal;"><span
style="line-height: 115%; font-family:
"Corbel","sans-serif";
font-size: 11pt;"><font color="#000000">William
Blazar is senior vice president of public
affairs and business development at the
Minnesota Chamber of Commerce – </font></span></span><a
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style="mso-bidi-font-weight: normal;"><span
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font-size: 11pt;"><font color="#0000ff">www.mnchamber.com</font></span></span></a><span
style="mso-bidi-font-weight: normal;"><span
style="line-height: 115%; font-family:
"Corbel","sans-serif";
font-size: 11pt;"><font color="#000000">.<o:p></o:p></font></span></span></big></big></big></big></b></p>
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