Minnesota governor wants tax on trucking services

Feb. 28, 2013

If Minnesota Gov. Mark Dayton’s proposed budget passes, the trucking industry in Minnesota will be looking at some sizeable changes, including a 5.5% sales tax for trucking services.

Minnesota Trucking Assn. (MTA) President John Hausladen and other MTA representatives are traveling around the state talking to trucking companies to alert them to the fact that the 5.5% tax would be added every time a product is shipped by truck.

For example, if a truck is hauling lumber, there would be a tax for trucking the raw material out of the woods and to the mill, Hausladen said. It would be taxed again to haul it to a plant. It would be taxed yet again to haul it to the distributor, he said, and finally, it could be taxed if it’s trucked to the person purchasing the lumber to build something.

That has a “huge multiplier effect,” Hausladen said. “It’s hard on small businesses in Minnesota.”

Minnesota would be one of only five states with a tax on trucking services, Hausladen said.

“We want to reach out to businesses and understand their needs,” Hausladen told the Duluth News Tribune.

The trucking association will hold a meeting in Duluth at noon March 8 at the Green Mill Restaurant, 340 S. Lake Ave.

About the Author

Deborah Whistler

Voice your opinion!

To join the conversation, and become an exclusive member of FleetOwner, create an account today!

Sponsored Recommendations

Downtime is expensive. This guide shows you how to keep your eet running, reduce repair surprises, and protect your margins—because when your trucks aren’t moving, you’re not...
Learn how fast oil changes can optimize vehicle downtime for fleet owners. Improve revenue and employee productivity while ensuring customer satisfaction with efficient maintenance...
Unlock proven strategies to streamline operations, lead your team, and keep your eet moving forward – all in one guide.
Commercial fleets bear a heavy burden from economic uncertainty, operational costs, and litigation risks. In-cabin video technology offers opportunities to reduce fleet expenses...