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Minnesota Amazon Tax Bill Begins At House Tax Committee


Minnesota Representatives Greg Davids (R), Bev Scalze (DFL) and Tina Liebling (DFL), authored and submitted "...an internet sales tax fairness proposal"(HF 1849) this legislative session. HB 1849 effectively requires Internet retailers, such as Amazon, to collect and remit sales tax on purchases made by Minnesota residents. Previously, bills such as this one have not made it very far in the Minnesota legislature, but this one seems to have promise. Why?

HF 1849 has bipartisan support this time, plus the Governor's support and reliance on Internet retailer sales tax collection to meet his budget goals. However, this bill specifically identifies affiliates as creating nexus for Internet retailers. An Amazon spokesman has "...told the tax committee that his company would likely sever relations with affiliate sellers in Minnesota if the tax were imposed." Also testifying before the House tax committee was affiliate reseller Carri Rocha. She says, "...the solution needs to come from the federal government."

But according to Representative Ann Lencewski (DFL-Bloomington), "...the real purpose of the tax is to bring some fairness to the system. Right now internet sellers don't have to pay sales tax, but 'bricks and mortar' retailers do, which she says is unfair." She indicated that she agrees a federal solution should happen, but she doesn't feel they will act.

Governor Dayton says that the loss of state revenue due to lack of sales tax collection by online retailers "...gives these remote retailers an unfair competitive advantage over Main Street Minnesota retailers. Passing the bill would level the playing field for Minnesota businesses," and subsequently help support the Governor's job plan.

Neil Marriot, of mycablemart.com, says he doubts buyers are turning to the Internet to skate on sales taxes. Instead, he attributes it to convenience." He says, "Before you know it, 50 percent of everything everybody will buy will be over the Internet."

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Sales tax rates, rules, and regulations change frequently. Although we hope you'll find this information helpful, this blog is for informational purposes only and does not provide legal or tax advice.
Avalara Author
Susan McLain
Avalara Author Susan McLain
Susan McLain began her career as a technical writer in technology industries such as satellite networking and medical devices. Her skills encompass technical and marketing writing, usability engineering, verification and validation testing and protocol writing, requirements development, business analysis, technical illustration/graphic design and marketing. She has owned her own business providing service to small to medium sized business and in other positions, she has been in project management, documentation and marketing. She is currently the content specialist for Avalara helping to “make sales tax less taxing.”