\nFor many years Central Office Equipment has been exempt from State sales tax.\u00a0 This is no longer the case.\u00a0 While the legislation expanded sales tax exemptions for other items, it removed this important tool for telcos.\u00a0 Repealing the COE sales tax exemption was originally proposed by the Governor in his first budget in February.\u00a0 It was taken out of his revised budget later in the session.\u00a0 As a result, it was taken out of the House\u2019s tax bill but not the Senate\u2019s bill.\u00a0 As the bill went through the conference committee process, the MTA and other industry segments lobbied hard to keep the exemption.\u00a0 A special thank you to Gene Wenstrom\u00a0(Hanson Communications) and Dave Schornack\u00a0(Arvig) for their many calls and text messages to Senators Skoe\u00a0and Koenen.\u00a0 It should be noted that repealing this sales tax exemption is completely opposite of the Governor\u2019s own Broadband Task Force, which had recommended expanding the exemption to include all Broadband equipment purchases.<\/p>\n<\/blockquote>\n
David C. Olson, president of the Minnesota Chamber of Commerce followed up the sentiment in a recent letter to the editor in the Duluth News Tribune<\/a>\u2026<\/p>\n
\nThe telecommunications equipment sales tax will make it more expensive to supply broadband and technology that is critical for rural areas in Northeastern Minnesota and elsewhere in the state to compete and thrive. The tax on storage and warehousing could devastate this industry\u2019s ability to compete in Minnesota and will result in sales tax on storage of agricultural inputs, too.<\/p>\n<\/blockquote>\n
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