It was announced recently that the Minnesota legislature will not address the repeal of the sales tax on labor charges on repair of farm machinery during the upcoming special session.
“While some farmers have already started to pay this tax since it went into effect on July 1, more farmers will be feeling the pain of increased costs as we get back into the fields for fall harvest and equipment begins to break down,” said Minnesota Farm Bureau President Kevin Paap. “Over the next two years, farmers will be spending over $28 million paying this tax. This is a cost coming directly out of farmer’s pockets.”
Paap went on to say it was disappointing that this was not fixed when given the chance.
“We encourage the legislature and the Governor to address this issue in the first days of the 2014 Minnesota legislative session,” said Paap. “Elected officials on both sides of the aisle agree that this tax was a mistake and needs to be fixed. We need to make sure we address it as soon as possible.”