March 13, 2015 

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2015 Legislative Session | Week 10
Third Vendor Collection Allowance Bill Introduced Using Tiers   

This week Senator Ann Rest, chair of the Tax Reform Division, introduced a new vendor collection allowance bill.  The bill, S.F. 1702, would create a tiered system of sales tax collection reimbursement based on a retailer's previous fiscal year sales and use tax liability. The percentage, as determined in the previous State fiscal year, is used at each sales tax remittance period to determine the allowance amount. 

 

MnRA actively worked with Chair Rest on the bill that would establish the following allowances:

1. Vendors with a sales and use tax liability less than $60,000 (in the previous State fiscal year ending June 30) would receive a 2.0 percent allowance;

2. Vendors with a sales and use tax liability between $60,000 and $600,000 (in the previous State fiscal year ending June 30) would receive a 1 percent allowance;

3. Vendors with a sales and use tax liability greater than $600,000 (in the previous State fiscal year ending June 30) would receive a .75 percent allowance
   
Passage of a vendor collection allowance is a top priority for MnRA this session. MnRA thanks Sen. Rest for her leadership on this issue.
I Am RETAIL Day At The Capitol
Last Chance To Register: Retailers From Across The State To Meet Legislative Leaders Thursday  


Your story meets your legislators at the Minnesota Retailers Association's I am RETAIL Day at the Capitol. Our half-day begins with a breakfast reception featuring legislative leaders at the Minnesota History Center followed by conversations with legislators at the State Capitol. 


With one in four jobs in Minnesota directly connected to retail, our elected officials now more than ever need to understand the impact of their decisions on retail businesses.

 

I Am RETAIL Day At The Capitol
Thursday, March 19
7:30 a.m. - noon 


No cost to attend. Continental breakfast served. RSVP requested by March 11. Non-members welcome.

  

Sponsors  

Presenting:
 
Supporting:
     


Transportation:Contributing:

Sales Tax
MnRA Testifies In Support Of Changes To June Accelerated Sales Tax Payments
 
In 2014 the Legislature rolled back early and estimated sales tax payments made by retailers remitting over $120,000 in sales taxes per year. In changing the threshold and percentage of the accelerated payment to $250,000, MnRA praised the change as positive for mainstreet retailers.

This past Tuesday the Senate Tax Committee heard S.F. 8, a bill to eliminate the June accelerated payment all together.  MnRA president Bruce Nustad testified in support of the repeal, acknowledging that the over $200 million one-time cost of the change likely requires Minnesota to look at another partial rollback or a phased approach to a repeal.

MnRA thanks Senate Tax Chair Rod Skoe, who is the bill's author, for introducing and hearing the June accelerated repeal.

Why do some Minnesota retailers have to make an early and estimated June sales tax payments?

The answer goes back to 1995 when the State had cash flow problems.  In order to balance the budget, Minnesota required some retailers to remit a percentage of their estimated June sales tax payments a couple days before the end of that same month. With the State's fiscal year ending June 30, the early payment provided cash flow for the State. Since then, the Legislature has occasionally changed the parameters around June accelerated payments based on it's budget needs.

Changes to Minnesota's June accelerated sales tax payment system is a priority issue for MnRA this session.
Recycling Policy
E-Waste Bill Heard in Environment Committee
 
This week members of the Senate Committee on Environment and Energy heard testimony on S.F. 1427, a bill that would modify electronic waste (e-waste) management by expanding the criteria for a "covered electronic device" to include cell phones, computers, small scale servers, computer peripherals, facsimile machines, small electronic equipment, and video displays.

The bill would also establish a program registration fee of $2,500 for manufacturers who sold over 100 video display devices to households in the State during the previous fiscal year. At the conclusion of the hearing the bill was passed and re-referred to the Finance Committee.
Personal Care Products
Senate Commerce Committee Hears Three Bills On Microbead Sales Prohibition 

This week members of the Senate Commerce Committee heard testimony on three bills all--related to prohibiting the sale of microbeads in personal care products. The bills, S.F. 507, S.F. 627, S.F. 674, would establish a phaseout and sell-through period for manufactures and sellers to related to use of synthetic plastic microbeads in over the counter personal products.

At the hearing S.F. 507 was amended to mirror the other two bills by removing a section on penalties for violations. At the conclusion of the hearing all three bills were laid-over for further consideration. 
Children's Products
Reporting Priority Chemicals In Children's Products Bill Rolling Before Committee Deadline
 
This week S.F. 1099 passed through two committees (Health,  Human Services, and Housing and also Judiciary) before heading to the Commerce Committee this Monday in an effort to comply with the first committee deadline on March 20. The bill would require manufactures and distributors who sell children's products to report information on each product that contains more than one "priority chemical".

In addition, the bill would assess a $1,000 fee for each priority chemical initially reported. This fee would double for each subsequent report for the same chemical used in the same product.


MnRA has concerns with this bill relative to impacts on retailers.
Workplace
DOLI Hosting Women's Economic Security Act Training
 
The Minnesota Department of Labor and Industry is hosting training for employers relating to the Women's Economic Security Act (WESA) passed last year. An RSVP is requested.

Women's Economic Security Act Training for Employers
Wednesday, March 25
Morning session: 9:00 - 10:30 a.m.
Evening Session: 4:30 - 6:00 p.m.
 
Department of Labor and Industry
443 Lafayette Street North
St. Paul, MN 55115
 
Co-Hosts and Presenters:
Minnesota Department of Labor and Industry
Minnesota Department of Employment and Economic Development
Minnesota Department of Human Rights
Minnesota Women's Consortium
 
To RSVP e-mail [email protected].

E-Fairness
U.S. Senate Introduces Federal Marketplace Fairness Act (Again!)
 
From the Alliance for Main Street Fairness, www.standwithmainstreet.com

"Yesterday, the Marketplace Fairness Act of 2015 was introduced in the Senate. Your support over the last few years has again encouraged our Senate champions to stand up and author bipartisan legislation that closes the online sales tax loophole. Here's a quick recap of the Marketplace Fairness Act of 2015 and what it means for you.

The bill: 
  • Allows state and local governments to enforce existing state and local sales and use taxes, if they so choose.
  • Creates no new taxes or any increases to existing taxes.
  • Provides parity at the point of purchase between businesses like yours and online-only sellers.
  • Exempts small remote sellers with less than $1 million in annual nationwide remote sales from collecting sales and use taxes.
  • Provides a pathway for states and localities across the county to collect and estimated $23 billion annually in uncollected tax revenue and balance their budgets.
Concensus continues to grow in Washington that the online sales tax loophole's day has come. Last week, Supreme Court Justice Anthony Kennedy acknowledged as much. He stated that the Court's ruling to create the online sales tax loophole was a grave mistake and should be reversed by the Court or Congress. Justice Kennedy's statements make him the latest to join you and thousands of other small businesses in support of e-Fairness  - now it is time for the House of Representatives to act.
Week Ten
Bill Introductions

 

Below is a digest of bills introduced this week that may have impacts specific to retailers and consumers.

 

House of Representatives

 

Nash; Albright; Anderson, M.; McDonald; Drazkowski; Pugh; Scott;Theis and Hoppe introduced:
H. F. 1544, A bill for an act relating to taxation; tobacco; modifying the definition of premium cigar; reducing the maximum tax on premium cigars; amending Minnesota Statutes 2014, sections 297F.01, subdivision 13a; 297F.05, subdivisions 3a, 4a. The bill was read for the first time and referred to the Committee on Taxes.

 

Schoen, Lien and Halverson introduced:

H. F. 1553, A bill for an act relating to health; requiring labeling of children's products containing hazardous chemicals; amending Minnesota Statutes 2014, section 116.9401; proposing coding for new law in Minnesota Statutes, chapter 116. The bill was read for the first time and referred to the Committee on Health and Human Services Reform.


Zerwas, Schoen, Schomacker, Lohmer and Halverson introduced:

H. F. 1604, A bill for an act relating to health; requiring commissioner of health to develop a list of authorized entities; allowing certain individuals to obtain and administer epinephrine without a prescription; proposing coding for new law in Minnesota Statutes, chapter 144.

The bill was read for the first time and referred to the Committee on Health and Human Services Reform.


Anderson, S. introduced:

H. F. 1619, A bill for an act relating to commerce; regulating the redemption period in pawn transactions; amending Minnesota Statutes 2014, section 325J.06. The bill was read for the first time and referred to the Committee on Commerce and Regulatory Reform.


Baker and Clark introduced:

H. F. 1652, A bill for an act relating to health; making changes to the Minnesota prescription monitoring program; amending Minnesota Statutes 2014, section 152.126, subdivisions 1, 3, 5, 6; repealing Laws 2014, chapter 286, article 7, section 4. The bill was read for the first time and referred to the Committee on Health and Human Services Reform.


Peterson introduced:

H. F. 1659, A bill for an act relating to health; modifying definitions; increasing the permitted ratio of pharmacy technicians to pharmacists; amending Minnesota Statutes 2014, sections 151.01, subdivisions 15a, 27; 151.02; 151.102; 151.58, subdivision 2. The bill was read for the first time and referred to the Committee on Health and Human Services Reform.


Howe introduced:

H. F. 1670, A bill for an act relating to commerce; regulating franchises; amending Minnesota Statutes 2014, sections 80C.06, subdivision 5; 80C.14, subdivision 2, by adding subdivisions.

The bill was read for the first time and referred to the Committee on Commerce and Regulatory Reform.


Wagenius introduced:

H. F. 1743, A bill for an act relating to employment; occupational health and safety; requiring that records be kept of the ethnicity of certain injured, sick, or deceased employees; amending Minnesota Statutes 2014, section 182.663, subdivision 1. The bill was read for the first time and referred to the Committee on Job Growth and Energy Affordability Policy and Finance.


Anderson, S. and Norton introduced:

H. F. 1811, A bill for an act relating to commerce; regulating the pricing and distribution of contact lenses; proposing coding for new law in Minnesota Statutes, chapter 325F. The bill was read for the first time and referred to the Committee on Commerce and Regulatory Reform.


Knoblach and Davids introduced:

H. F. 1829, A bill for an act relating to taxation; sales and use and excise; repealing June accelerated payments; amending Minnesota Statutes 2014, sections 289A.18, subdivision 4; 289A.20, subdivision 4; 289A.60, subdivision 21; 297F.09, subdivisions 1, 2; 297F.25, subdivision 2; repealing Minnesota Statutes 2014, sections 289A.60, subdivision 15; 297F.09, subdivision 10; 297G.09, subdivision 9. The bill was read for the first time and referred to the Committee on Taxes.

 
Senate
 
Senator Gazelka introduced:
S.F. No. 1453: A bill for an act relating to commerce; providing an exemption from bullion coin dealer regulation for dealers in certain coins; amending Minnesota Statutes 2014, section 80G.01, subdivision 3. Referred to the Committee on Commerce.

Senator Thompson introduced:
S.F. No. 1475: A bill for an act relating to commerce; regulating the redemption period in pawn transactions; amending Minnesota Statutes 2014, section 325J.06. Referred to the Committee on Commerce.
 
Senator Sparks introduced:
S.F. No. 1496:A bill for an act relating to unemployment insurance; adopting recommendations of the Unemployment Insurance Advisory Council; making federal conformity, policy, and technical changes; amending Minnesota Statutes 2014, sections 268.035, subdivisions 6, 21b, 26, 30; 268.051, subdivision 7; 268.07, subdivisions 2, 3b; 268.085, subdivisions 1, 2; 268.095, subdivisions 1, 10; 268.105, subdivisions 3, 7; 268.136, subdivision 1; 268.188; 268.194, subdivision 1; repealing Minnesota Statutes 2014, section 268.042, subdivision 4. Referred to the Committee on Jobs, Agriculture and Rural Development.

Senator Torres Ray introduced:
S.F. No. 1497: A bill for an act relating to employment; occupational health and safety; requiring that records be kept of the ethnicity of certain injured, sick, or deceased employees; amending Minnesota Statutes 2014, section 182.663, subdivision 1. Referred to the Committee on Jobs, Agriculture and Rural Development.  
 
Senators Dibble and Schmit introduced:  
S.F. No. 1522: A bill for an act relating to agriculture; prohibiting certain Internet sales of restricted use pesticides; amending Minnesota Statutes 2014, section 18B.30. Referred to the Committee on Jobs, Agriculture and Rural Development.

Senators Gazelka and Dahms introduced:
S.F. No. 1561: A bill for an act relating to taxation; property; eliminating the automatic inflation and exempting the first tier of commercial-industrial property from the state general levy; repealing apportionment; amending Minnesota Statutes 2014, section 275.025, subdivisions 1, 2; repealing Minnesota Statutes 2014, section 275.025, subdivision 4.Referred to the Committee on Taxes.

Senator Osmek introduced: 
S.F. No. 1579: A bill for an act relating to liquor; abolishing classification of 3.2 percent malt liquor; repealing Minnesota Statutes 2014, sections 340A.101, subdivision 19; 340A.403; 340A.408, subdivision 1; 340A.411; 340A.412, subdivision 6; 340A.504, subdivision 1. Referred to the Committee on Commerce. 

Senators Sieben, Eaton, Marty, Hoffman and Rest introduced:  
S.F. No. 1656: A bill for an act relating to health; requiring labeling of children's products containing hazardous chemicals; amending Minnesota Statutes 2014, section 116.9401; proposing coding for new law in Minnesota Statutes, chapter 116.Referred to the Committee on Environment and Energy.
 
Senator Rest introduced:
 S.F. No. 1695: A bill for an act relating to taxation; sales and use; modifying certain sales tax rates; amending Minnesota Statutes 2014, sections 297A.62, subdivision 1; 297A.992, subdivision 2. Referred to the Committee on Finance.

Senators Rest, Gazelka, Koenen, Dziedzic and Housley introduced:
S.F. No. 1702: A bill for an act relating to taxation; sales and use; providing a vendor allowance; amending Minnesota Statutes 2014, sections 289A.20, subdivision 4; 297A.77, subdivision 3; proposing coding for new law in Minnesota Statutes, chapter 297A. Referred to the Committee on Taxes.
 
Senator Thompson introduced:
S.F. No. 1722: A bill for an act relating to property taxation; phasing out the state general levy over six years; repealing the student achievement levy; amending Minnesota Statutes 2014, sections 126C.13, subdivision 4; 275.025, subdivision 1; repealing Minnesota Statutes 2014, section 126C.13, subdivisions 3a, 3b, 3c. Referred to the Committee on Taxes.
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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]