Minnesota state legislators’ push to impose unprecedented sales tax obligations on Internet marketplaces has little support from Minnesotans, according to a new poll jointly released by NetChoice and Americans for Tax Reform (ATR).
Only nine percent of Minnesotans think that the current online sales tax collection process needs to change. Yet, leaders of Minnesota’s legislative tax committees continue to promote legislation (HF4 and SF 2225) that would now require out-of-state businesses to collect online sales tax from Minnesotans.
Language in the omnibus tax bills, HF4 and SF2225, would force all online marketplaces with offices in Minnesota to collect tax on all Minnesota sales. Online marketplaces are merely virtual storefronts that allow millions of small businesses to reach customers across the globe.
HF4 would create a new tax burden — one that is very unpopular with state residents — on every marketplace in Minnesota. Sixty-two percent of Minnesotans (and more than 79 percent who have an opinion) are not inclined to support HF4, according to the NetChoice/ATR polling. Full information available at NetChoice.org/MNpoll
“By a 2-to-1 margin, Minnesotans consider this legislation a statewide tax increase,” said Grover Norquist, ATR President. “It is rather simple. This bill puts shackles on any online marketplace looking to make Minnesota its home.”
Supreme Court precedent requires businesses to collect and remit taxes only for places where they have a physical presence. This protects Minnesota businesses from being forced to comply with 12,000 tax jurisdictions or face audits from 46 states. Already, 24 of the top 25 e-retailers collect sales tax in Minnesota.
“This bill is like requiring the Mall of America to be responsible and liable for the sales tax on purchases made at stores in the mall. That sounds absurd since states have always imposed sales tax on the actual seller, not on malls or marketplaces,” said Steve DelBianco, executive director of NetChoice. “Gopher State residents agree, as 4 out of 5 with an opinion on this legislation do not support it.”
About the NetChoice/ATR Poll
From March 31-April 4 2017, Morar Consulting conducted an interactive survey of 608 adult residents of Minnesota. The survey has a margin of error of +/- 4 percentage points.
NetChoice is a trade association of e-Commerce businesses who share the goal of promoting convenience, choice, and commerce on the net.
About Americans for Tax Reform
Americans for Tax Reform (ATR) is a nonprofit taxpayer advocacy group founded at the Request of President Reagan. ATR opposes all tax increases as a matter of principle.