The Minnesota Legislature adjourned just before midnight last evening. While the Minnesota Retailers Association (MnRA) plans to publish a full recap of the 2013 legislative session in the coming weeks, many of our retail members were tracking the passage of bills in the final days and hours of the session.
Below is a list of outcomes from issues MnRA was tracking and working on
just the final days of the legislative session.
E-Fairness | passed
MnRA-championed e-fairness was included in the House and Senate tax bill. Early Monday morning, the House passed the tax bill followed by the Senate late that same evening. It is expected that the Governor will sign the tax bill in to law.
This issue was one of MnRA's proactive policy initiatives for the session.
MnRA supported the e-fairness provision in the tax bill.
Gasoline Pre-Pay Preemption | passed and signed in to law
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.
MnRA supported this bill.
Clothing Tax | did not pass
Expanding Minnesota's sales tax to clothing, originally offered by Governor Dayton then in the Senate tax bill, was not included in the final tax bill.
MnRA opposed a new tax on clothing.
Sports Memorabilia Wholesale Tax | did not pass
A 10 to 13 percent wholesale tax on sports memorabilia was initially included in both the House and Senate tax bills, but was removed in conference committee.
MnRA opposed a sports memorabilia tax.
Tobacco Excise Tax and Other Tobacco Products | passed
The final tax bill passed by the House and Senate on the last day of session relies heavily on a $1.60 tobacco excise tax increase and taxes on other tobacco products to support stadium funding and general fund spending. It is expected the Governor will sign the tax bill, including the excessive tobacco taxes.
MnRA opposed this dramatic increase in tobacco taxes.
Minimum Wage | did not pass
The Minimum Wage Conference Committee did not present a bill to the House and Senate. As such no changes were made to the minimum wage. Expect this issue to be taken up next session.
MnRA opposed taking Minnesota's minimum wage above the federal level and adding automatic wage inflation.
Pharmacy Modifications | did not pass
A bill making modifications to Pharmacy Board licensing requirements and including drug compounding provisions passed the House but was not taken up on the Senate floor in the final days of the session.
MnRA supported this bill.
Product Stewardship | passed
Product stewardship provisions regarding paint were included and passed by both the House and Senate in the Environment, Natural Resources and Agriculture Finance and Policy Bill. Carpet and batteries were originally in the bills, but were later removed.
MnRA opposed inclusion of batteries in the product stewardship bills based on retailer concerns.
Gas Tax | did not pass
Versions of a gas tax appeared in several bills but ultimately did not show up in either the final transportation or tax bills.
MnRA opposed increasing Minnesota's gas tax.
Storage and Warehousing Business-To-Business Tax | passed The final version of the tax bill as adopted by the conference committee and passed by both the House and Senate contain storage and warehousing business-to-business taxes. The bill is expected to be signed by the Governor.
MnRA opposed business-to-business taxes in the tax bill.
Capital Equipment Upfront Exemption | passed
The tax bill contains an upfront exemption relating to the state capital equipment tax.
MnRA supported this provision in the tax bill.
Street Utility Districts | did not pass
An effort the allow municipalities to establish new taxing districts for street improvements failed to make it in the final transportation or tax bills.MnRA opposed this new authority.
New 4th Income Tax Tier | passed
A new 9.85 percent income tax tier is created in the tax bill passed by the House and Senate.
MnRA expressed concern over the impact of this tier, especially on pass-through business entities.
If you have any questions on these or other legislative issues, contact MnRA's Rochelle Westlund at (651) 227-6631, or
rochelle@mnretail.org.
