|
.
<br /> ©,r-i ©' 'khat darned tax: D-cc ti s , 1 q�
<br /> © © Reforming Minnesota's property tax system 3
<br /> is ever botax everybody's worry
<br /> ustness property
<br /> There might and more than `�"'r "'"
<br /> three times as �'
<br /> have been a day in "� "" much as in North
<br /> Minnesota when
<br /> Dakota and Iowa.
<br /> high business -V ‘,S4-`_,.-
<br /> property taxes '�• �� Its a difference --- -- "+ -
<br /> weren't much Carlsen notices -'�` �r +s
<br /> not just when he's ;- -.....-•=4:4-
<br /> more than some selling out-of • •t
<br /> thing to whine ,a,,,x .4 .,.:,E v _n
<br /> about at the Rom state, but when _
<br /> r -1. _ 4`#.. he's bidding =� .., a ...
<br /> tan'Club. :.-.--4,:4<7.� h. '
<br /> But that day
<br /> against out-of- �"
<br /> •
<br /> inwany
<br /> e 1997,nor
<br /> Lori Sturdevant state companies '� `"� .-,--x .
<br /> for Minnesota � "' `` '''
<br /> in any recent year. - -•-'..- �'�
<br /> In an economy business—some • -' ` 'µ - - '
<br /> that makes even home-grown. thing he finds himself doing often --1'- -1
<br /> • home-based businesses compete these days. It's a difference that • -,Y..`S„-,...,-/-4-..t4- : :
<br /> with somebody across the coun- means smaller profits,which means .....--:-.ti, 4.
<br /> try,high taxes on commercial and smaller wage increases for his 75 .
<br /> industrial property are every- employees and slower acquisition .
<br /> body's worry. They're bound to of the latest equipment. x
<br /> drag Minnesota companies down. "We are growing—but we're
<br /> That's the story David Carisen also at the peak of the economic Star Triune Photos by Richard Sennott
<br /> and business owners like him are cycle,"he said.."How much faster
<br /> trying to tell the Legislature this could we grow?How many more David Carisen,CEO of Atlas Manufacturing—a precision metal"job shop"
<br /> ear. By the numbers and the people could we employ?Should- in Minneapolis—says the company is doing a growing business in out-of-
<br /> endlines, their story rings true. n't we make our taxes competitive state sales.But high property taxes hold it back.Below left,the plant
<br /> ut they've got two credibility harder to quantify but dear nev-
<br /> been
<br /> r gwd has ' •-- � ' `�. - ertheless.Domailleandotherbusi-
<br /> been carping about high taxes �,.� "` "` A .,, 1. = - f- ness owners are mad at Minnesota
<br /> since statehood;and two,the Mtn :!•-•"".'"•�M "" 4 "�''`�` .�a��� -� , �Y"°`� for burdening them with the
<br /> hasten
<br /> economy is hot enough to s _ t ,. �,-� nation's highest property taxes.
<br /> hasten the spring thaw. / �` =_.. "As long as the tax system isn't
<br /> Business is indeed good at .1"";-..-g .."\--, ..-",,:.?.'e-. fair, won't trust govern-
<br /> precision
<br /> Atlas Manufacturing, a -.."';',:t -,,Yfair, people Domaille said. "It has an
<br /> n-
<br /> that'sbe sheet metal"job shop" = impact on the credibility of every-
<br /> _
<br /> that's been in his family since the r. one at the Capitol.
<br /> 1960s.And while Carlsen person-
<br /> "It matter whet e;
<br /> ally may not be a chronic com- 1 my business shouldn'tis doing well or not.
<br /> plainer about taxes,he's a board • It's wrong this way."
<br /> member at the Minnesota Cham- - Domaille'songto treat uss: It is wrong.
<br /> of Commerce, and it voices �- , . Equity is an important quality in
<br /> frequent tax complaints. -.--, -�.--�, a tax system,without which peo-
<br /> Still, the Legislature should ` '�,.� . legrow cynical about govern-
<br /> business
<br /> .�_ P y
<br /> hear him out.The changes in his � '----�"' ment or are tempted to cheat it
<br /> e in the the are being Schumacher said,and Cretex will whatever way they can.
<br /> replicated all over the state.Con- and find out?"
<br /> cern over the toll taken by.the There probably are no busi- save S125,000 a year. l: s also unwise, especially a
<br /> nation'sness
<br /> ers in
<br /> he
<br /> ate who Most
<br /> nnesota businesses Minn.F..sota
<br /> s find them-
<br /> xesepidet business proper- haven't
<br /> ooked attt eirtproperty don't face such temptation.Some, selves in increasing ecompetition
<br /> n taxes is epidemic.
<br /> "'Traditionally, our customers tax bills and asked the same like Nancy Domaille of Rochester, with firms from other states and
<br /> were very local," Carlson said. questions. Thanks in part to the hear Wisconsin's siren song but other countries.The greater that
<br /> "But that started to change a few drumbeating by the Minnesota resist for personal reasons. But competition, the less Minnesota
<br /> years ago.Now,probably 15 per- Chamber,business folk know full Domaille's fiber-optics service businesses can afford the handi-
<br /> cent of our sales are out-of-state well that if they move across state company p
<br /> Iysne price fotaor
<br /> suppliers clearly ex esbear
<br /> as p o a result of borthe
<br /> every "I use
<br /> the growth is for
<br /> —more year.That's where lines,they'll pay a lot less.
<br /> us."0 That knowledge weighs heavily and they pass on their property den they must bear. Every Min-
<br /> But that's where high property on Elk River-based Cretex Corn- tax bills to me," Domaille said. nesotan should worry about the
<br /> taxes hold Atlas back.It pays taxes panies as they consider where to "But I can't pass mine on. Nine- toll that tax burden takes on the
<br /> of S1.17 per square foot per year. expand a specialty machine plant ty-five percent of my customers state's businesses,and every Mir.-
<br /> That's more than half of what it pays now in Vadnais Heights. "That's and my competitors are out-of- nesotan should join in urging the
<br /> in rent.Or,to put it another way,it's not far from Wisconsin, you state. I'm caught in the middle. Legislature to lighten that load.
<br /> more than twice as much as the know,"said Cretex Vice President Smaller profits and'reluctance to
<br /> same plant would pay,on average, Don Schumacher.Build a S3 mil- expand are the result,she said. —Lori Sturdevant is a Star Trib-
<br /> in Wisconsin and South Dakota, lion facility a few dozen miles east, There's another price, too — une editorial writer.
<br />
|