Retail at the Capitol | May 10, 2013
legislative updates for retailers from the Minnesota Retailers Association
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Week 19 | Minimum Wage Heads to Conference Committee
Senate Follows House In Passing Minimum Wage Increase
A bill to raise the state minimum wage to $7.75 by August, 2015, passed off the Minnesota Senate floor Wednesday afternoon on a 39-28 vote. This follows a companion bill that passed the Minnesota House 68-62 last Friday, calling for a dramatic increase to $9.50, also in 2015. In addition to differing wage levels, the two versions of the minimum wage proposal have another key difference--automatic indexing future minimum wage increases to inflation. The $9.50 House version of the bill includes automatic wage indexing, which for retailers could be as difficult to absorb as the more than 50 percent increase in the minimum wage. The Senate bill passed does not contain indexing. Now that both the House and Senate have passed minimum wage bills, the work shifts to a conference committee appointed by both legislative bodies to iron out the differences between the two bills. The conference committee will be charged with bringing the bills together and delivering one uniform bill back to the full House and Senate for approval. Given the differences in wage levels and the wage indexing issue, the conference committee has its work cut out for it. To add complication for businesses working toward a reasonable outcome, the Governor has indicated he prefers the higher wage in the House bill. After failed attempts over the past week to amend each bill to conform to the current federal minimum wage of $7.25, retailers now need to prepare to connect with conference committee members. It is expected that the House and Senate will name their designates to the conference committee at the end of the week. Once those committee members are known, contacting legislators to encourage adoption of the $7.75 Senate version without indexing or basic federal minimum wage conformity will be critical. The Minnesota Retailers Association will provide contact details for the conference committee as soon as it is available. Be ready to share with legislators how an increase in minimum wage will impact the jobs you provide and their related importance in your community.
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Ban the Box Passes The House, On The Way To Dayton
"Ban the Box" legislation preventing employers from inquiring about an applicant's criminal history until after an interview has been granted passed the house on Wednesday.
Under the bill, the Department of Human Rights will monitor compliance and may assess fines of up to $500 to companies failing to follow the statute. During the first year of the implementation violators will be first given a warning, then will have 30 days to adjust their application system before a fine is assessed.
This bill passed the Senate previously and is headed to the Governor's desk, where it is expected to be signed into law.
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Group Fights Excessive Tobacco Excise Tax
The Minnesota Wholesale Marketers Association, with support from dozens of retailers and trade groups including the Minnesota Retailers Association, has taken to the air waves to ask legislators not to enact an excessive tobacco excise tax that makes Minnesota uncompetitive.
On Wednesday night the conference committee working on the Omnibus Tax Bill spent time digesting the differences between the bills passed, mainly the House's $1.60 per pack increase versus the Senate's $.94.
Retailers are concerned that a high tobacco tax level, especially above the $.94, will drive consumers across the border for their tobacco purchases, resulting in a negative impact on gasoline sales, in-store purchases, and retail jobs.
To hear radio ads produced by the Minnesota Wholesale Marketers Association, visit www.tobaccotaxgrab.com. The ads have generated a substantial number of calls to conference committee members. Contact your legislators to add your voice to keeping Minnesota competitive.
The Tax Conference Committee on H.F. 677 is meeting to discuss provisions of the Omnibus Tax Bill. MnRA continues to work to oppose a tobacco tax increase that makes Minnesota uncompetitive along with several other tax provisions contained in the bill.
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NoClothingTax.com: Sign The Petition
Over 150 consumers and retailers have signed MnRA's petition opposed to extending Minnesota's sale tax to clothing.
This is a grassroots issue and it is important we continue to remind Governor Dayton of his decision not to extend Minnesota's sales tax to clothing, and reinforce its absence from the House bill.
Visit www.NoClothingTax.com to sign the petition, and please share the link with employees and friends.
The Tax Conference Committee on H.F. 677 is meeting to discuss provisions of the Omnibus Tax Bill. MnRA continues to work to oppose expanding Minnesota's sales tax to clothing along with several other tax provisions contained in the bill.
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Marketplace Fairness Act Passes US Senate
After many years of conversations with retailers, the U.S. Senate on Monday passed the federal Marketplace Fairness Act on a 69-27 bipartisan vote. The action caps twelve years of conversations about the lack of fairness in sale tax collection in Minnesota and across the United States. U.S. Senators Amy Klobuchar and Al Franken were leaders in the effort to pass the Act. "The U.S. Senate's action gives states like Minnesota the option to level the playing field for retailers and enforce their sales tax laws. Minnesota's brick and mortar retailers have been saying for years that they aren't seeking a marketplace advantage, just an opportunity to compete in a fair system. Hopefully the Senate action will motivate the U.S. House to advance the conversation on the Marketplace Fairness Act, and give its 60 House co-sponsors a chance to lead a conversation on this important bill," said MnRA president Bruce Nustad in reaction to the Senate passage. MnRA's Rochelle Westlund discussed e-fairness Monday evening on Fox 9 News. Click here to view the interview.At the state level, e-fairness is in play with its inclusion in both the House and Senate Omnibus Tax Bills. Those bills are currently are being sorted out by a tax conference committee. MnRA supports the passage of e-fairness at the federal and state level.
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Legislators and Media Visit MnRA Memorabilia Tax Display
One of the provisions contained in the Omnibus Tax Bill of interest to retailers is the gross reciepts (or wholesale) tax on sports memorabilia. This provision would place a 10-13 percent tax on all items bearing a professional, or possibly a division I logo.
On Tuesday, MnRA brought hundreds of items to the State Capitol to help legislators and the media digest the number of items that would be subject to the House and Senate proposed wholesale sports memorabilia tax. Later in the day, Governor Dayton indicated that he does not favor a sports memorabilia tax as a mechanism to plug a potential Vikings stadium funding gap cause by lackluster e-pull tab sales.
Thank you to Mateo's Soccer tore, J.C. Penney, Target, and Best Buy for offering items for display, and thanks to The Rouen Group for providing logistical and media support for the display.
The Tax Conference Committee on H.F. 677 is meeting to discuss provisions of the Omnibus Tax Bill. MnRA continues to work to oppose the sports memorabilia tax along with several other tax provisions contained in the bill.
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Stay connected | Weekly teleconference calls for members
Retail at the Capitol Conference Calls
For members seeking an insiders look at the legislative week, MnRA's Director of Government Relations Rochelle Westlund hosts a weekly 10:00 a.m. Monday conference call. This members-only activity takes place each week of legislative session through its conclusion and includes opportunities for retailers to get involved in the policy making process. Thanks to our Retail at the Capitol calls sponsor, Holiday Companies, there is no cost for these calls and no advance RSVP is required.
To obtain dial-in information for these calls, contact MnRA at rochelle@mnretail.org or call us at (651) 227-6631.
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400 Robert Street North, St. Paul, MN 55101
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