Minnesota’s high tax burdens rank as one of the top barriers to economic growth, according to annual surveys and Grow Minnesota! member visits. Minnesota businesses are required to pay taxes that are among the highest in the nation in many categories. In today’s world of global competition and increased mobility, tax burdens and related costs do matter – especially for rank-and-file Minnesotans.
We refer to them as "business" taxes, but that’s really a misnomer. Business taxes are regressive. Companies cannot simply absorb higher costs year after year and as the saying goes, "for every action, there’s a reaction." Businesses must look for ways to spread the rising cost of doing business, and there are three likely avenues to do this:
- They raise the cost of products and services to their customers.
- They lower the rate of return to their shareholders.
- They limit the amount of money available for their employee wages and benefits.
Minnesota businesses pay an extra property tax to the state that is paid in addition to all the local property taxes. This tax adds nearly 30% to business-owners property tax bill. Minnesota’s business property taxes rank among the highest in the country – 2nd highest for some types of commercial properties in greater Minnesota and 6th highest in the metro.
All Minnesotans will benefit from a tax system that makes Minnesota companies ready to grow – ready to compete in an everchanging global economy. Contact your legislator and ask them to reduce the state-wide business property tax for your Minnesota business.
Have question about business taxes? Contact us!