Statement from Revenue Commissioner Frans on the U.S. Senate Passing the Marketplace Fairness Act yesterday

Statement from Revenue Commissioner Myron Frans on the U.S. Senate Passing the Marketplace Fairness Act yesterday

We are pleased that the U.S. Senate passed the Marketplace Fairness Act.  We urge the U.S. House of Representatives to follow suit.

This legislation levels the playing field for all those Main Street businesses in Minnesota and across the country.  It also helps large retailers like Best Buy and Target that serve as “showrooms” for shoppers who test products at local stores then buy them online without paying sales tax.

Closing the loophole by requiring Internet retailers to collect sales taxes eliminates an unfair price advantage for online retailers. We applaud Senator Al Franken and Senator Amy Klobuchar for voting in support of fairness and competitiveness.

While the Marketplace Fairness Act gives states the authority to collect sales tax on online purchases, Governor Dayton’s budget proposal includes closing the loophole for out-of-state retailers with a nexus, or presence, in the state.  If enacted, both provisions will make the marketplace fairer for Main Street businesses across the state.

The Marketplace Fairness Act does not create any new tax or increase any existing tax; it simply provides for the enforcement of state and local governments’ authority. It is estimated that state and local governments are currently losing almost $23 billion annually from such sales. For Minnesota, the estimate is over $400 million annually.

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Photo: Commissioner Frans discusses the U.S. Senate passing the Marketplace Fairness Act with with Creative Kids Stuff President and MFA proponent Roberta Bonoff.