Minnesota’s Governor Mark Dayton recently proposed some budget changes that could have a great impact on the trucking industry.
The proposed budged changes have the Minnesota Trucking Association scrambling to inform the trucking industry of the implications the changes will bring.
“We want to reach out to businesses and understand their needs,” Minnesota Trucking Association President John Hausladen said.
One of the proposed changes is to add a 5.5% sales tax for trucking services. The tax would be added each time product is shipped, Detroit Lakes Online reported.
“If it’s lumber, there would be a tax for trucking the raw material out of the woods and to the mill. It would be taxed again to haul it to a plant. It would be taxed yet again to haul it to the distributor, and finally, it could be taxed if it’s trucked to the person purchasing the lumber to build something,” Detroit Lakes Online reported.
Many fear the impact the multiplied tax might have on small businesses.
If passed, Minnesota will be one of only 5 states that has a similar tax.
In addition to the financial squeeze the tax would create, by 2015, all trucks will be required to use EOBRs, a costly conversion.
Also by 2015, all trucks will be required to use a B20 blend of biodiesel.
There are nearly 15,000 trucking companies in Minnesota, most are small, locally-owned operations.