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One of those companies Governor Pawlenty is talking about is Luverne Truck Equipment. It moved its company From Luverne to Brandon in 1984 because of the better business climate. But will it and others move back to Minnesota to set up shop in one of these tax free zones?
From welding grill guards to polishing running boards Luverne Trucking Equipment has been shining as a business ever since it moved its operations to Brandon nearly 20 years ago.
John Schulzetenberg, President of Luverne Trucking Equipment, says, "We talked to both the state of Minnesota and the state of South Dakota and found our opportunities were a lot better over here."
No corporate or state income tax was not only good for the company, but also its employees.
Schulzetenberg says, "Even though Luverne was only 20 minutes away at least 50 percent of our employees moved to South Dakota, because of the tax breaks available to South Dakotans."
If the Minnesota legislature establishes the tax free zones, Schulzetenberg doesn't plan on moving his company back.
"Minnesota isn't very friendly to businesses and setting up a tax free zone won't help because the people who have moved here like it here."
Plus he doesn't think it'll have any impact on South Dakota's business climate.
Schulzetenberg says "What will happen, you'll see people moving from the central part of Minnesota out into the tax free zones, rather than having people moving from South Dakota or Iowa moving to Minnesota."
Luverne Fire Apparatus also moved from Luverne to Brandon two years after Luverne Trucking.