The Minnesota legislature passed a $434 million tax-relief bill last month that included the repeal of controversial sales taxes that would have affected some business services this month, including self-storage.
Half of the tax relief is expected to come from repealing sales taxes on warehouse and self-storage services, telecommunications services, and business equipment-repair services. The taxes were all passed last year as a way to broaden the tax base. The warehouse bill was set to go into effect this month, prompting Republicans to ask for a special session last fall to repeal it sooner, according to the source.
In praising the tax development in its Monday e-mail newsletter, the national Self Storage Association (SSA) called the sales tax “chaotic.” “The SSA has been active in Minnesota, seeking the tax repeal and working to improve current laws that govern the sector,” association officials said.
The SSA has assisted other states in battling the threat of sale tax, such as Illinois, where a 4 percent sales tax was supposed to go into effect on Jan. 1 in River Grove. The town was the third in the state to attempt to implement a sales tax on self-storage in the past five years. Both previous attempts were abandoned.