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Companies at Minnesota-North Dakota border critical of taxes

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MOORHEAD, Minn. (AP) — Minnesota businesses along the North Dakota border say state tax changes are making it nearly impossible for them to compete with companies across the state line.

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Minnesota Public Radio News reports Minnesota has raised property, sales, gas and cigarette taxes. Meanwhile, North Dakota's booming economy due to oil revenue has allowed lawmakers to cut taxes there.

While some Minnesota businesses are critical of the tax changes, University of North Dakota economist David Flynn says there's not much evidence that shows tax disparities can kill a business.

Moorhead Mayor Mark Voxland says staying competitive with North Dakota, and the larger city of Fargo, is a perennial problem. He says his city gets help from lawmakers, including $1.5 million in border city credits for communities along the North Dakota-South Dakota border.

Copyright 2013 The Associated Press.

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