Tax Bill 2 - How Would it Affect Small Business?

Date: April 30, 2014

Related Content: NFIB in My State State Minnesota

They are at it again on a smaller,
lower-caliber second tax bill that does contain a couple of provisions NFIB is
closely watching.  The first one is a net positive that would
significantly revise the June accelerated sales tax that retailers must pay
ahead of time.  This provision, which is in both bills, completely exempts
smaller retailers from having to pay the June accelerated sales tax and it is
appreciated.  Those with gross annual sales taxes collected of under
$120,000 are completely exempted from this nagging requirement that retailers have
had to do for several decades now.  Under the provision, they must pay the
sales taxes owed for June by June 28 and it has caused a financial hardship for
some retailers over the years.  Sales taxes are normally due by the 20th
of the following month.  This was passed long ago as an accounting
gimmick/shift to give the state a little more money on their balance sheet at
the end of the fiscal year.

 

The second significant provision
in the bill is a property tax reduction proposal that unfortunately is a very
mixed bag for small business.  The bill eliminates the state-wide
commercial property tax on the first $150,000 on commercial property, but
unfortunately causes an approximately $77 million shift onto all other
businesses.  The proposal will help many small businesses that own their
business property but will raise taxes/rents on small businesses that are
tenants. 

 

This provision is only in the
House bill and it’s unfortunate that they are picking winners and losers and
causing a huge commercial property tax shift when we have a large
surplus.  NFIB is urging the members of the tax conference committee to
find a way to help all property owners when it comes to a reduction in the
state-wide portion of the commercial property tax.  The state-wide commercial
property tax accounts for about 20% to 30% of a business’s total property tax
bill.

 

Related Content: NFIB in My State | State | Minnesota

Subscribe For Free News And Tips

Enter your email to get FREE small business insights. Learn more

Get to know NFIB

NFIB is America's leading small business association, promoting and protecting the right of our members to own, operate and grow their business

Find out more about
NFIB Membership

Or call us today

1-800-634-2669

News

State Issues


Choose Your State

Foundations

YEF Foundation Research Center Legal Foundation

Member Benefits