Legislature Hits the Ground Running on E-Fairness and Clothing Tax
Minnesota Senator Ann Rest held hearings in her Tax Reform Subcommittee this week on a variety of tax-related bills she introduced, including a MnRA-supported measure to address E-Fairness, and a MnRA-opposed clothing sales tax exemption repeal. Sen. Rest also introduced a digital goods tax bill.
MnRA's Rochelle Westlund lead the Mainstreet Fairness Coalition in testifying in support of Rest's E-Fairness bill, S.F. 8. A special thank you to MnRA Board member Roberta Bonoff, owner of Creative Kidstuff, and Michael Weinhagen, owner of Weinhagen Tire Company, for sharing their stories with the Subcommittee to illustrate how this bill would help level the playing field for retailers.
Other organizations testifying in support of E-Fairness were the League of Minnesota Cities, the Association of Minnesota Counties, the Metro Independent Business Alliance, the Minnesota Business Partnership, and the Minnesota Chamber of Commerce.
With widespread bipartisan support, in addition to support from the Governor's office, we are hopeful that E-Fairness will have a path to passage.
Click here to see summary of E-Fairness testimony from KARE-11.
Click here to watch an archive of the full hearing.
Clothing Sales Tax
Relative to the measures to expand sales tax to clothing (S.F. 9/S.F. 11), MnRA along with the Mall of America testified in opposition to these bills due to the potential impact they could have on retailers.
In today's turbulent economy, extending Minnesota sales tax to clothing would take disposable income out of the hands of consumers. The resulting reduction in spending would impact businesses bottom line, and hinder retailers' ability to maintain and create jobs. With one in four Minnesota jobs depending on retail, it is important Minnesota makes public policy that encourages growth.