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Helping Your Business Grow President Edward Kearney Chamber of Commerce

Vice Chairman Jodi Kurtz Warners’ Stellian

Past Chairman Eric Iverson Iverson Consulting

Secretary Misty Scholler Anchor Bank

Treasurer Guy Gunner Gunners Garage

Jane Hill Culver’s

Bethany Marquette BMO Harris Bank

Nick Martinez Send Out Cards

John Wortman American Legion

Chamber Administration Kristy Cleveland Business Manager

March 2013

From the desk of Scott Kadrlik, Chamber Chairman Hi Taxpayers! I am Scott Kadrlik, CPA/PFS. Tax Filing Deadlines are looming. I want to remind you that you have a tax return due soon. Your corporations are due on March 15 and your Partnerships and Individual returns are due on April 15th. The tax preparation and filing responsibility placed on taxpayers’ is ominous and disheartening for some. I once had a client tell me that “she hated having her tax return prepared as much as she hated going to the dentist or having a Pap Smear”. I knew exactly where I stood. We tend to blame the IRS and the State of Minnesota for the requirements placed on us for the reporting and paying tax. I don’t want to seem too sensitive, but actually it is not their fault. All of the complicated tax laws and taxes that you pay are the fault of Congress. The failure to meet budget deadlines and fiscal cliffs? Congress again. Uncertainty over future tax rates? Congress. Delays in tax filings? Also Congress. The IRS and Minnesota Department of Revenue are forced to administer programs as far apart from each other – and as unrelated to revenue-raising – as social welfare and business development . The last major tax law change was in 1987. Since then there have been more than 5,000 tax law changes. I am guessing that none of them included simplification. I want you to know that the Internal Revenue Code is 9 times the size of the Bible and contains less Good News. The businesses and citizens of this great country are constantly being bombarded with more and more regulation from expanded sales tax filing to significant changes to our health care programs. Congress is responsible for all of these and needs to hear from you. We elected these people and if we want them to consider your business issues when creating laws, they need to know how you feel. This issue will include the names and contact information of your Congressional representatives in the Apple Valley area. Send them a note, give them a call or stop by their office. They need to know the kind of job they are doing. If you completely approve of the things they are doing, they need to hear that also. Governor Dayton’s Budget Proposal The Governor has sent his minions across the state promoting his budget proposal for a $3 Billion increase in the State budget. The increase is going to be paid for with the expansion of sales tax on services. Almost daily there are articles in the paper demonstrating the negative impact on Minnesota businesses. The articles come from virtually all areas of service that will be dramatically impacted by the increase and the harmful effect the changes will have on the slow moving economy. Your Chamber Board has demonstrated its support to quash this proposal. You need to contact your Minnesota representatives and express your views also on this issue. If this budget bill passes, it will be extremely hard to get it reversed. The State Legislature is scheduled to adjourn in Mid-May. There is always a flurry of legislation that gets passed at the end of the session and the taxpayers find out about it after everything has been passed. This will be too late. Stay involved and contact your legislature today. Scott Kadrlik, CPA/PFS Meuwissen, Flygare, Kadrlik & Associates, P.A. 952-541-1996 scott@mfkcpa.com U.S. Congressman John Kine U.S. Senator Amy Kblobuchar (952) 808-1213 (612) 727-5220 Email not available Email not available State Rep. Distric 57A Tara Mack State Rep. Anna Wills State Senator Greg Clausen (651) 296-4312 (651) 296-4306 ( 651) 296-4120 rep.tara.mack@house.mn re.anna.wills@house.mn sen.greg.clausen@senate.mn


Chamber Business After Hours

Chamber Coffee Connections 7:30 to 9:00 AM

Tuesday, March 5th 14690 Galaxie Ave Suite 110

Thursday, March 14th 4:30 - 6:30 PM

Come and celebrate St. Patrick’s Day early with green beer and great Irish food catered from Rascals!

Apple Valley Coffee, pastries and a chance at $50.00!

15751 Emperor Ave Next the New AV Liquor and Target Photo’s of 2012 Business After Hours at Think Bank.

Douglas B. Loon

Chamber Luncheon Thursday, March 21st

Vice President, Regional Affairs & Advocacy Congressional & Public Affairs

U.S. Chamber of Commerce

11:30 AM - 1:00 PM

This is a man who knows how to get things done for business! We are honored to host someone so politically seasoned and of national stature. Doug Loon manages the 7 regional US Chamber offices in all 50 states as well as the Midwest Regional states. Previous to the US Chamber where he has worked as Legislative Director for Sen. Arlen Specter and for the US Chamber as their Washington D.C. Director of Congressional Affairs and worked for years as staff Director for the SenateCommittees on Veteran’s Affairs and the powerful Senate Commerce Committee. His presentation is pointed and fascinating as to the real issues affecting you and offers the best solutions. Don’t miss this chance to connect with the best.

$15.00 for members

$20.00 for non-members 15435 Founders Lane Apple Valley, MN 55124

RSVP today to kristy@applevalleychamber.com Apple Valley Chamber of Commerce Calendar of events

U.S Chamber office, directly facing the Oval Office

March Coffee Business After Hours

Luncheon

Interested in hosting a Chamber event? Contact us at 952-432-8422 for details and available dates!


The President’s Perspective by Edward Kearney (As Chair of the metro Chamber President’s, I’ve asked other Chambers to step up their opposition to

the Governor’s proposed Business Services Tax. I just spent a day at the Capitol with the YMCA as I’m on their board and was surprised they will be affected $3.7 million locally on membership alone. Our Chairman Scott Kadrlik has been in the Business Journal, metro newspapers and MPR in opposition to this job killing hidden tax and has taken strong leadership on this. CPA’s know taxes!)

Apple Valley Chamber Board last week voted unanimously their opposition to what will deeply affect businesses (especially small),

non-profits, local governments etc. The excuse given by the Governor is that we are changing to a service economy and must start taxing services. Ironically, exceptions are beginning as last week the Governor decided to not tax out of state services (helping mostly multi-national businesses) and will likely next exempt local and county governments. Replacing their collective shares will likely raise the burden on small business even further. The Governor also fails to tell you that “hard and soft goods” produced also use business services so ALL goods and services will all go up and in a pyramiding stacking sort of hidden way. It’s a wolf in sheep clothing that increases the state budget from $34 billion to $37 billion. Hmm! It isn’t tax reform. It’s a hidden tax increase, more than 8%. Almost every business I speak with is shocked at the impact. The press has been silent on whom is affected. The Star Tribune editorial board actually agrees with us (see last item on list below; them) but they too fail to mention anyone except lawyers, accountants and architects. Isn’t it the complex jobs that use high-tech, computer, medical services & devices, consultants or any job that uses our brains, the very jobs we are trying to get or keep? Those jobs will eventually leave or never come. Growth will only be in simple goods, as companies can take the best jobs elsewhere, not use small businesses and instead hire within. Even the YMCA, auto repairs, bank charges, business services, computer services, contractors for your home, beauty salons, travel agency, snow plowing, any personal service purchased by business, advertising, marketing, engineering, research, conventions, sports, investment advice etc. etc. etc. Source: Minnesota Department of Revenue (all will be taxed at 5.5%)

These are all the

Governor’s proposed business services Affiliate Nexus Digital Products the press and Governor’s office has not Parallel Taxation of Direct Satellite Services Parallel Taxation of Remote Access Software shared with you. Admission to stadium box seats and suites, exhibitions, and selling event The 5.5 % new tax on each of these will Repeal exemption for ready to eat meat and seafood Clothing on items over $100 compound quickly into your cost of goods sold. Admissions/Memberships Over-the-counter drugs Personal services - e.g. barber shops, beauty salons, tattoo and body piercing, nail salons Other personal services - e.g. wedding planning, dating services, shoe shining, personal shopping Veterinary Services Personal instruction - e.g. dance, golf, tennis, etc. Brokerage & investment counseling - e.g. portfolio management, investment advice Bank charges & safe deposit box rental Legal services purchased by consumers Accounting services purchased by consumers Auto repair services Household goods repair & maintenance Warehousing & storage services (does not include storage of farm products or refrigerated storage) Taxicabs and Other Ground Transport Services (not public transportation or school transportation) Travel agent services Legal services purchased by businesses Accounting and bookkeeping services purchased by businesses Architectural and engineering services Specialized design services - e.g. interior decorating, industrial design services, graphic design services Computer services - e.g. custom computer programming, computer systems design services, computer facilities management services, data processing, hosting and related services Management consulting services - e.g. administrative management consulting services, human resources consulting services, marketing consulting services, environmental consulting services, scientific and technical consulting services, scientific research and development services Advertising and related services - e.g. advertising agencies, public relations agencies, media buying agencies, media representatives, display advertising, advertising material distribution services Office administrative services Facilities support services - e.g. snow plowing, cleaning Employment services - e.g. temp help agencies, employment placement agencies, executive search agencies, professional employer organizations Business support services - e.g. telephone answering services, collection agencies, telemarketing services on contract, secretarial and court reporting services, document preparation services, private mail centers, collection agencies, credit bureaus, repossession services Other support services - e.g. packaging and labeling services, convention and trade show organizing Other misc. professional and technical services - e.g. marketing research and public opinion polling, photographic services, commercial photography, translation and interpretation services Electronic and commercial equipment repair & maintenance Personal services purchased by businesses Telecommunications equipment Court reporter documents Advertising materials Publications - e.g. newspapers, magazines, commercial printing What do you think now?


Apple Valley Chamber Luncheon Thursday, February 14th

The Chamber welcomed MnDOT’s new Commissioner Charlie Zelle as guest speaker. Apple Valley Public Works Director Todd Blomstrom welcomes his State Counterpart.

Apple Valley gave a strong presence at the luncheon, asking the Commissioner important questions on signage, bridge work and funding.


Happy Valentine’s Day

Thank you for the wonderful turnout!

Pictured in the above left photo is Cheryl Tait with the MN Zoo, who had questions specific to the up coming road construction on 35 E. Pictured above Cheryl is MnDOT’s chief communication specialist Kevin Gutknecht who helped answer questions..

The new MnDOT Commissioner is now aware of AppleValley’s transportation needs.

Left photo: (left to right) Tom Lawell, Clint Hooppaw, Scott Kadrlik, Charlie Zelle, Ed Kearney, Tom Goodwin.


Chamber Coffee Connections Tuesday, February 5th

Pictured above is City Council member Tom Goodwin with Caribou’s new manager Todd Becker. It was Todd’s first week as manager.

A fantastic crowd braved slippery roads to enjoy delicious coffee and chance to network.

2013 Apple Valley Chamber Directory This is a reminder that ECM will be selling ad space for the Chamber directory from February 25th - March 8th.


Chamber Business After Hours Thursday, February 21st

Pictured on the left is John Bergman, who was proud to show off the City’s newest liquor store. We were pleased that Chamber members were able to explore the store’s vast wine and beer selections, best in southern MN.

Chamber members enjoyed great food catered by Rascals while sampling different types of wine and beer.

In the photo above is Wayne Hilbert, CNH Architects, with Chamber President Ed Kearney. CNH were the architects for the new liquor store and also designed Valleywood’s new clubhouse.

Thank you to Casillero del Diablo for providing wine tasting and Third Street Brewhouse, who came all the way from Cold Spring, for a great selection of beers.

Above is a photo of Scott Swanson, the head of all 3 City Liquor Stores, holding up the grand prize and the store manager Rick Hayne.


14800 Galaxie Ave, Suite 101 Apple Valley, MN 55124 952-432-8422 www.applevalleychamber.com

Ambassador’s Corner

From the Ambassador Chair Misty Scholler

The next Ambassador meeting with be held on

Thursday, March 28th 3:00 PM at the Chamber Office

All Ambassador’s are welcome along with any Chamber member’s interested in joining the Ambassador group. Select wine and cheese will be served. We hope to see you there!


March 2013 newletter