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Warehousing Companies Fight Expanded Sales Tax

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ST. PAUL (AP) — Some Minnesota businesses that would be subject to a new sales tax expansion are complaining loudly and trying to get parts of it repealed.

The pending sales tax on warehousing services is a big concern at companies like Distribution Alternatives in Lino Lakes and Lawrence Transportation in Red Wing. The new law extends the 6.875 percent sales tax to them.

Warehouse companies say they’ll face a significant competitive disadvantage if their customers are required to pay the tax. Some are rethinking expansion plans, while some are considering switching business to facilities in other states. So they’re hoping the Legislature reverses course.

Democrats in charge of the House and Senate tax committees say that could happen next session. The sales tax change for warehousing doesn’t kick in until April 2014.

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