Retail at the Capitol | May 17, 2013
legislative updates for retailers from the Minnesota Retailers Association
| |
Week 20 | Legislature Adjourns This Coming Monday
What's In And Out These Final Legislative Days
With a mandate to adjourn by midnight this Monday, the Legislature is poised to move through major tax and spending bills over the next three days. As of Friday afternoon, below is a look at what's in and what's likely out. If you have any questions on these or other legislative issues, contact MnRA's Rochelle Westlund at (651) 227-6631, or rochelle@mnretail.org.
|
Minimum Wage Deadlock
Thursday several media outlets reported Senate Majority Leader Tom Bakk saying that the minimum wage issue may be dead for this session. Senate leadership likely lacks enough floor votes to pass the House level of $9.50 an hour, and the House seems unwilling to accept the Senate's $7.75. Given this apparent impasse, a minimum wage increase may be off for this legislative session, however there is a possibility minimum wage will be taken up in the final session days or as part of a broader legislative deal. In the event minimum wage is not acted on this year, it remains in play for next year. In fact, all legislation introduced this year carries over to next year--the second year of the biennium. Earlier in the week, MnRA issued a Retail Action Alert on minimum wage. Retailers should continue to contact legislators on both the wage level and automatic wage adjustment provision. Click here to see MnRA's Retail Action Alert. (Note that Sen. Tomassoni's correct phone number is (651) 296-8017.)
|
Tobacco Excise Tax At Uncompetitively High Level
At a Thursday evening press conference, Governor Mark Dayton, Senate Majority Leader Tom Bakk, and House Speaker Paul Thissen announced a budget deal including a dramatic increase in the state tobacco excise tax. The deal adds $1.60 per pack to Minnesota's existing $1.23, for a total of $2.83. This level puts Minnesota at the sixth highest tobacco tax in the country, and directly threatens Minnesota's convenience retail industry, especially those retailers in boarder communities. MnRA opposes this dramatically high level of excise tax on tobacco and asks members to reach out to legislators to ask them not to unfairly and unreasonably tax tobacco purchases. Click here to find contact information for your legislators.
|
Pre-Pay Preemption Signed By Governor!
Governor Mark Dayton signed in to law Thursday a MnRA-supported bill prohibiting local governments from mandating customers pre-pay for gasoline purchases. This issue was one of MnRA's proactive policy initiatives for the session and is consistent with MnRA's philosophy that retailers make the best decisions on how to interact with customers.
Thank you to Sen. James Metzen and Rep. Daniel Schoen for sponsoring this legislation important to convenience retailers and consumers. Also, thank you to Steve Rush, Holiday Companies, and his lobbying team for their efforts in seeing this through the legislative process, along with the Minnesota Petroleum Marketers Association.
The pre-pay preemption takes effect immediately.
|
Sports Memorabilia Tax Out Of Tax Bill
A proposal that was carried in both the House and Senate to apply a 10 to 13 percent wholesale tax on sports memorabilia is out of the omnibus tax bill and is not currently being considered as a Viking's stadium funding source.
MnRA opposed the tax based on its complexity and impact on youth sports. Earlier this month MnRA set up a display of sports memorabilia to help legislators and the media understand the depth of products that the tax would be applied to.
In recent days, MnRA worked with tax conference committee members to communicate serious tax administration issues related to main street retailers, retailers with a Minnesota headquarters, and retailers headquartered outside the state with locations here. The tax would have been unworkable for all areas of retail in Minnesota.
MnRA's lobbying effort, combined with grassroots member activity, resulted in the sports memorabilia tax being dropped. Thank you to Mateo's Soccer Store, J.C. Penney, Target, Best Buy, and The Rouen Group for added assistance on this issue.
|
Clothing Tax Off The Table
Expanding Minnesota's sales tax to all clothing purchases, as offered in the Senate's omnibus tax bill, is no longer being considered.
MnRA and retailers effectively communicated the dramatic change this tax would have had on retail business models and its impact on Minnesota's status as a clothing sales destination.
In addition, the tax proved unpopular with Minnesota consumers. Recent polls showed that three out of four Minnesotans opposed the tax.
|
Omnibus Tax Bill Includes E-Fairness, Digital Downloads, And Storage, Warehousing Tax
In the outline of the budget deal crafted by legislative leaders and the Governor, MnRA-championed e-fairness remains in the mix. Language modifications in the Senate brought to the omnibus tax bill includes drop shippers and the establishment of nexus in the state. MnRA is encouraged that e-fairness remains in the conference committee version of the tax bill and looks forward to Minnesota passing this provision and adding our momentum to the related debate at the federal level.
Digital downloads, storage, and warehousing would also be taxed under the budget outline. As of the time of this publication, potential revenue associated with these taxes had been estimated, but both are scheduled to be further developed Friday afternoon.
MnRA will continue to digest and react to conference committee tax provisions today and through the end of the legislative session Monday.
|
Product Stewardship Changes Still Under Consideration
As a part of the environment and agriculture finance omibus bill, conference committee members are discussing product stewardship changes in Minnesota. Currently the bill deals with paint stewardship as outlined by the Minnesota Pollution Control Agency.
Provisions relating to batteries and carpet are still being considered by the conference committee. MnRA is working closely with retailers, especially on the batteries initiative.
For the latest update on this issue this weekend, contact Rochelle Westlund via e-mail at rochelle@mnretail.org.
|
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.
|
|
|
|
|
|
|
|
400 Robert Street North, St. Paul, MN 55101
|
|
|
|
