Living in a materiaL worLd - Minnesota Precision Manufacturing ...

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Industry Profile Iron range resources Your vision. Our backing. Top Reasons to Locate or Expand in Northeastern Minnesota 1. LowER cOSTS The costs for land and commercial real estate are significantly lower in northeastern Minnesota. • Average cost of office buildings is 78 percent less than national average • Average cost per acre for commercial/industrial real estate is 98 percent less than national average 2. GREATER accESS TO capITAL Northeastern Minnesota is the only region in Minnesota with its own state development agency. As a result, businesses in the area have access to abundant resources for grants, loans and venture capital. • Low interest loans as low as one to 3 percent • Loan guaranties • Equity investment 3. EducATEd and pROducTIve wORkfORce Northeastern Minnesota is known for its skilled, educated, highly motivated and dedicated workforce. • Five out of seven counties in northeastern Minnesota were ranked among the top 25 most productive counties in Minnesota according to a study conducted by the University of Minnesota Duluth. • According to the Minnesota State Planning Agency, northeastern HOW can we help you? Minnesota’s turnover ratio is significantly lower than any other region in Minnesota or the nation. • Despite a perception of heavy unionization, northeastern Minnesota’s workforce is just 17 percent organized—the same average as the rest of the state. • Skilled workers are more readily available in northeastern Minnesota as compared to the rest of the state according to a study by the University of Minnesota Duluth. • Seventy four percent of employers in northeastern Minnesota are satisfied with their workers’ technical skills, compared to 58 percent in the metro area and 66 percent statewide. • Student ACT scores in northeastern Minnesota are among the highest in the country. If your company needs assistance in growing its business, help is readily available. From financing to facilities and beyond, the welcome mat is out for businesses of all types and sizes that would like to call northeastern Minnesota home. Contact our Business Development Team 1.877.829.3936 www.IronRangeResources.com 4. ExcELLEnt quALITy of LIfe People tend to live and work in northeastern Minnesota because that’s where they want to be. The region’s small cities, towns and rural areas provide “big-city” amenities with low crime rates and virtually no traffic jams. Communities provide education, health care, and housing that are second to none. With a beautiful natural environment featuring clean air, lush forests and sky-blue lakes, the area offers world-class, year-round outdoor recreation. A wide variety of cultural attractions includes visual and performing arts, and historic sites which preserve and showcase the rich heritage of the region. Northeastern Minnesota has long been known as a vacation destination. Local residents believe it is better to live and work where you like to play. www.ironrangeresources.com
shOP | PROFILE Laser 1 Technology GETTING a Cut FROM MINNESOTA SALES TAX REFuNDS It isn’t every day companies receive a $16,000 check in the mail. But that’s exactly what happened to Laser 1 Technology, a laser machining shop in St. Paul, Minn., after learning it had overpaid sales taxes on various items by that much. Like most shops, Laser 1 Technology spent the better part of 2008 and 2009 focusing on sales and day-to-day operations, not areas of potential savings. One day the company received a call from Dan Neumann, owner of Minnesota Sales Tax Refunds, saying he might be able to save the company some money. After pouring over 3 years of company receipts and accounts payable invoices, Neumann found approximately $16,000 in sales tax overpayments that qualified for a rebate. And it wasn’t just on capital equipment. Much of the rebate was due to taxes paid on nitrogen, oxygen and laser gases used in production. “I was surprised he found that much money,” said Tim Walsh, Laser 1 Technology’s president. “And I was surprised how little time he took up. He didn’t interfere; he was very easy to work with.” Most companies operate under the assumption that their controllers or CPAs are aware of any and all forms of refunds, Neumann said, but because most manufacturers never collect sales tax, overpayments on purchases in this area are often overlooked. Furthermore, many state auditors don’t often mention the refund because it slows down the auditing process and creates more work for them. About 10,000 companies in Minnesota are eligible for sales tax refunds, he said, but only 2,500 or so actually file claims each year. Minnesota Sales Tax Refunds worked with about 20 companies in 2009 and all of them collected money. The average rebate for manufacturers was around $9,000. Another manufacturer Neumann worked with last year was Baklund R&D, a machine shop in Hutchinson, Minn. Although it had been applying for sales tax rebates on larger items, it managed to overlook the sales tax it had been paying on tooling and smaller machines. The rebate added up to $18,000. “I was surprised by how simple and painless the process was,” said Jon Baklund, owner of Baklund R&D. “I just handed over our receipts and accounts payable invoices and Dan took care of the rest.” About Minnesota Sales Tax Refunds Neumann started Minnesota Sales Tax Refunds in 2009 after working for nearly 4 years as a state auditor. He said there are many expenses that qualify for sales tax refunds, including: ▶▶Production equipment ▶▶Repair or replacement parts ▶▶R&D equipment ▶▶Quality control equipment ▶▶Chemicals or gases used in production ▶▶Materials included in the product ▶▶Utilities used in production ▶▶Packaging materials Minnesota Sales Tax Refunds prepares two types of refunds for companies: 1. Capital equipment refunds (taxes that are refundable) Manufacturers are forced to pay sales tax on production equipment, but are entitled to a rebate. Many companies know that production machines qualify, but they might not know that repair parts and leased equipment also qualify. 2. Purchaser refunds (taxes that shouldn’t be paid in the first place) A few big areas include electricity, gas and fuel used in the production process. Many companies don’t realize they don’t need to pay taxes on 75 to 90 percent of their electricity or other utilities. Dan Neumann, a former auditor who now owns Minnesota Sales Tax Refunds, helped Tim Walsh, president of Laser 1 Technology, identify more than $20,000 in sales tax refunds since 2009. A Laser-Like Focus on Future Rebates Recognizing that companies don’t want to take on new projects, Neumann has tried to make the process of obtaining a sales tax refund as simple as possible. After reviewing their invoices from the last 3 years, he prepares all the documentation necessary and mails the information to the Department of Revenue, listing himself as the contact. Once a company receives a check inhand, it pays a percentage to Minnesota Sales Tax Refunds. After filing for its $16,000 rebate last year, Laser 1 Technology didn’t think Minnesota Sales Tax Refunds would find much this year. But it was wrong. “We thought we were being prudent and paying attention to areas of overpayment,” Walsh said, “but he was still able to find about $8,000. He’s welcome back anytime.” PM For more information about Minnesota Sales Tax Refunds, contact Dan Neumann at daniel@mnsalestaxrefunds.com or 612.462.9662 or visit www.mnsalestaxrefunds.com PAID SUPPLEMENT May | June 2010 PRECISION MANUFACTURING | 21
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Page 22 and 23: Competing on Value BREAkING THROUGH
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