December 9, 2013

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Senator Al Franken stopped by Grand Jet� Saturday to visit with owner
Ruthena Fink and customers during Grand Meander Days.
Retail Sales
Minnesota Retailers Report Good Crowds Thanksgiving Weekend But Remain Cautious About Holiday Spending 

National reports from Thanksgiving weekend concluded traffic was up at retailers across the country, however there was a slight dip in spending--largely attributed to strong retail competition including deals and "doorbusters".  The National Retail Federation reported consumers spent  $407.02 from Thanksgiving through the weekend, down from $423.55 a year ago.

In an unscientific survey of members, the Minnesota Retailers Association (MnRA) found that 55 percent of retailers saw more customers walking through their doors than anticipated, with another 30 percent seeing the level of traffic they expected.

Also in good news for Minnesota's economy, 45 percent of retailers reported more sales Thanksgiving weekend over the same period last year, along with 22 percent saying the two years were about equal.

Despite reports of strong traffic and sales, retailers in Minnesota are cautious when it comes to the economy and consumer spending around the holidays.  Fifty-five percent of retail respondents anticipate this year's holiday season sales to match last year's, and 20 percent said they anticipate sales to be less. Only 20 percent of retailers expect sales to be above the 2012 holiday season level.
Holiday Visit
Senator Franken Recognized For E-Fainress Leadership At Visit To Grand Jet� Saturday

  

In support of retailers around the holiday season, U.S. Senator Al Franken stopped by Grand Jet� this past Saturday to visit with owner Ruthena Fink and customers during Grand Avenue's Grand Meander days.

 

Senator Franken thanked Grand Jet� for its long-time commitment to customers and the economy, recognizing the shop as it celebrates 30 Christmas seasons serving dancers. 

 

MnRA President Bruce Nustad was on hand to present Senator Franken with the National Retail Federation's "Hero of Main Street" award for his leadership on sales tax fairness, or e-fairness.

 

"We appreciate that Senator Franken not only talked about the importance of e-fairness with his Senate colleagues this past year, but devoted all his budget time on the floor of the Senate to underscoring the importance of this issue for retailers in Minnesota," said Nustad in presenting the award to Franken.

 





State Budget
Reported State Surplus May Help In Effort to Repeal Minnesota's Business-To-Business Taxes


From the Star Tribune, Neal St. Anthony, December 8, 2013

  

Governor Mark Dayton "Gov. Mark Dayton, benefiting from good timing as we approach a 2014 election year, indicated last week that he wants to cut taxes for business and middle-class Minnesotans, thanks to a newly forecast $1.1 billion budget surplus.

The resurgent Minnesota economy is producing tax revenue faster than anticipated.

Dayton's aides say he may ask the DFL-dominated Legislature to repeal or at least dilute three business-to-business taxes passed last spring. In an interview, Minnesota Revenue Commissioner Myron Frans, a tax lawyer and former small-business CEO, said there will be no specific proposals to legislative leaders until the February budget forecast.

"The governor is focused on his priorities of jobs and a fairer tax system,'' said Frans. "We haven't closed the door on anything over here."

Dayton is believed to be most inclined to repeal a storage/warehouse tax; a tax on repairs that will hit hardest small businesses that don't have their own maintenance staffs, and a telecommunications equipment tax. Dayton didn't advocate for these taxes, but signed them into law last spring."

 

MnRA supports repeal of the three business-to-business taxes enacted during the 2013 legislative session. 

 


Pharmacy
Minnesota Supreme Court To Hear Pharmacy Case Wednesday

  

The Minnesota Supreme Court is scheduled to hear an appeal of an intermediate court ruling involving an important generic prescription drug pricing case this Wednesday.  Back in August the Court agreed to hear the case following an appeal in which MnRA joined other interested parties in an amicus brief petition.  

 

Partners in the amicus brief include Retail Litigation Center, National Association of Chain Drug Stores, National Community Pharmacists Association, Independent Pharmacy Cooperative, Thrifty White Pharmacy, Minnesota Pharmacists Association, and Minnesota Chamber of Commerce.

 

Arguments before the Court on this case can be viewed online later Wednesday at www.tpt.org/courts.  

 


E-Fairness
Supreme Court Ruling On E-Fairness Says It May Be Time To Revisit Quill V. North Dakota

 

From the New York Times, Adam Liptak, December 2, 2013

  

"The United States Supreme Court on Monday let stand a ruling from New York's highest court requiring Internet retailers to collect sales taxes even if they have no physical presence in the state.

As is their custom, the justices gave no reasons for their decision not to hear the case, which involved Amazon.com, the online giant, and a smaller competitor, Overstock.com. The two companies challenged a 2008 state law that required online companies to collect sales taxes on purchases made by New York residents.

Brick-and-mortar companies often complain that they are put at a competitive disadvantage when they are required to collect sales taxes and online companies are not.

In March, the New York Court of Appeals ruled that the companies had a sufficient presence in the state because of affiliated independent sites that linked to the retailers in return for a commission. "The bottom line," Chief Judge Jonathan Lippman wrote for the majority, "is that if a vendor is paying New York residents to actively solicit business in this state, there is no reason why that vendor should not shoulder the appropriate tax burden."

The chief judge added that it might be time to reconsider the basic rule that states may not collect taxes from out-of-state companies without some physical presence in the state, a principle recognized by the United States Supreme Court in its 1992 decision in Quill Corp. v. North Dakota."

 


Taxes
Smokers Paying For New Stadium

 

From Minnesota Public Radio, Tim Nelson, December 6, 2013

  

"That assertion that Minnesota's cigarette taxes won't be needed for Viking stadium financing? Well, that's up in smoke. A small section of the state budget forecast released Thursday says that the state is basically writing off new electronic gambling as a revenue source for the stadium for now.

 

"We're assuming no growth, until we actually see it," Minnesota Management and Budget commissioner Jim Schowalter said in an interview today.

 

At one point the state was expecting as much as $72 million a year from the games. The actual net take for the state? It was about $89,000 for fiscal year 2013. That shortfall will leave, at least in the short term, a gap between the debt service on stadium bonds, expected to be sold next month, and the money coming into the state.

 

Lawmakers earmarked a new corporate tax to replace most of the faltering pulltab revenue back in May, but that's only $20 million, far short of the $34 million a year the state expects to pay annually in debt service."

 


Member Service
MnRA's RetailPlus+ Buying Group

The Minnesota Retailers Association (MnRA) has leveraged the collective clout of our members to offer increased savings on the products and services essential to retailers. These vital products and services help Minnesota retailers navigate the often complicated terrain of operating as a retailer.

Thank you for your patience as we redesign the web presence of the RetailPlus+ Buying Group in the coming weeks.

Question on the program? Contact the MnRA staff at (651) 227-6631.  

 
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Minnesota Retailers Associaiton
400 Robert Street North, suite 1540
St. Paul, MN 55101
Tel. (651) 227-6631 - mnretail.org - [email protected]


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