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Minnesota’s Largest Newspaper to Shift Printing Operations to a Neighboring State with Lower Taxes

Star Tribune Shifts Printing Operations to Iowa

The Minnesota Star Tribune has decided to close its printing facility in Minneapolis and will move production to Iowa by the end of the year.

This marks the end of 158 years of paper printing in Minnesota, impacting approximately 125 employees, according to reports.

As indicated by the paper, this move is a “cost reduction measure” driven by a decline in print readership. Currently, the Minneapolis facilities are operating at merely 18% of their capacity. Transitioning to the Des Moines Gannett facility is aimed at cutting costs while ensuring that subscribers won’t experience disruptions in service.

Steve Grove, the publisher and CEO of Star Tribune, noted that this shift would save “millions” annually. He emphasized that it would allow the newspaper to preserve its resources, invest in digital innovation, and maintain its commitment to high-quality journalism in Minnesota.

While the announcement does not explicitly mention the reasons behind the relocation, it seems possible that Iowa’s favorable tax rates could significantly contribute to the savings for Star Tribune.

By establishing a physical presence in Iowa, Star Tribune may secure additional savings by creating a new tax nexus. Iowa has a corporate tax rate of 7.1%, compared to Minnesota’s 9.8%. Some projections suggest that Iowa’s corporate tax rate might decrease to 5.5% by the fiscal year 2026.

Star Tribune is not the only Minnesota newspaper making this transition. The St. Paul Pioneer Press, which has been printed at the Star Tribune facility since 2014, will also move its production to a facility in Des Moines.

The Minnesota Newspaper and Communications Guild expressed solidarity with the affected workers, stating, “It is a sad end to the 158-year period of printing publications in Minnesota. I am disappointed that the Minnesota Star Tribune will no longer be printed here by Minnesota workers.”