It’s official Minnesota will require major online sites to collect Minnesota’s 6.875 percent sales tax starting July 1, 2013. Good news for brick and mortar shops who have felt the lack of online tax (or really lack of enforcing online tax) has been unfair. Bad news for shoppers and large online retailers. Small online businesses are still exempt from the tax. The Pioneer Press reports…
The new law will have some wrinkles that don’t completely close the online tax-free opening. Smaller e-commerce sites are still not covered. Nor are online retailers that don’t have affiliated partners or physical stores in Minnesota. An affiliated partner would be a third-party seller that a retail site such as Amazon connects with an online buyer.
With one of the nation’s highest state income tax rates, Minnesota already steals taxed income a second time with a sales tax. They tax it when you earn it, tax it again when you spend it, and levy property taxes to boot. But Hey, we’ve got one of the best welfare programs in the country. FTB’s
I just received my affiliate termination letter from Amazon. There goes my rainy-day money. Now I can spend a few hours removing all of the links from my website that used to generate commissions. I’ll make less money to tax, and I will quit smoking to avoid the massive tobacco tax increase. How is that generating more revenue for Minnesota?
Tax isn’t my issue so much as the access and use of broadband – but I certainly think everyone is entitled to their opinion on taxation.
I will not be buying anything in Minn. stores
Most of my goods come from the far east now anyway