Statement On The Marketplace Tax Included In Minnesota’s Budget Bill

Internet Association Vice President of State Government Affairs Dustin Brighton released the following statement on the marketplace tax language included in Minnesota’s budget bill:

“The internet industry calls on Governor Dayton to strike the the language in the proposed budget that mandates the collection and remittance of sales taxes on behalf of retailers by online marketplaces. Minnesota is primed to benefit from internet-enabled business, but only if policymakers allow the online economy to flourish. The inclusion of a marketplace tax in the legislature’s budget proposal will stifle online commerce through heavy-handed taxation, undermining Minnesota’s economic growth for years to come.

“Internet commerce drives small-business growth throughout the state and around country. This legislation puts the onus on the online marketplaces operating in Minnesota to collect and remit sales taxes, a heavy, and unnecessary, burden. The internet contributes more than 9 percent to Minnesota’s GDP and 67,000 jobs to the state’s economy, and efforts to treat the internet differently weaken the local economy and make it harder for businesses to grow and thrive in Minnesota.”

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