From: Christie Ransom, Winona Area Chamber of Commerce president; Bruce Nustad, Minnesota Retailers Association president

 

As representatives of the Winona Area Chamber of Commerce and Minnesota Retailers Association, we urge lawmakers in St. Paul to reject proposed sales tax increases that would significantly impact Winona residents and retailers. A proposed sales tax increase would bring Winona's sales tax rate to 10.58% on some purchases (like vacuums, lamps, Bluetooth speakers, and more), a stark contrast to the 5.5% rate in La Crosse. This "Wrong Border Battle" would not only burden our families with increased costs but also drive shoppers across the river, harming our small retailers.

In 2023, Minnesotans saw nearly $800 million in direct cost increases, including various sales tax hikes, a home delivery fee beginning this July, and gas tax indexing. These increases strained family budgets during a period of economic uncertainty. Despite this, legislators are seriously considering additional consumer taxes, including 5-15 cents on beverage containers, a 3.2% sales tax increase on some electronics, and more. While the intentions behind these proposed taxes, such as enhancing recycling efforts, are admirable, we must consider the broader economic impacts on families and the competitiveness of our businesses, especially our small businesses.

Instead of relying solely on direct consumer taxes, we think there are alternative solutions that achieve similar goals without burdening families. Collaborative efforts between stakeholders can lead to policies that promote sustainability and economic growth.

Before imposing another $200 million in additional sales taxes on families, Minnesota's leaders should reconsider their approach and prioritize the well-being of Winona and our economic competitiveness. Let's work together to find solutions that foster prosperity for all Minnesotans, including those in our community, while maintaining affordability and supporting our small businesses.