Bill Text: MN HF2899 | 2011-2012 | 87th Legislature | Introduced
Bill Title: Resolution; Congress memorialized to pass the Marketplace Equity Act or the Marketplace Fairness Act.
Sponsorship: Partisan Bill (Republican 1)
Status: (Introduced - Dead) 2012-03-15 - Introduction and first reading, referred to Taxes [HF2899 Detail]
Download: Minnesota-2011-HF2899-Introduced.html
1.1A resolution
1.2memorializing Congress to pass the Marketplace Equity Act or the Marketplace
1.3Fairness Act.
1.4WHEREAS, in 1992, the United States Supreme Court issued its decision in the case of
1.5Quill Corporation v. North Dakota, ruling that states could not collect sales taxes from businesses
1.6that lacked a physical presence within their borders; and
1.7WHEREAS, this ruling was based on the theory that states' collection of sales taxes on
1.8these businesses was a burden on interstate commerce; and
1.9WHEREAS, at the time of the ruling, the decision primarily affected catalogue sales; and
1.10WHEREAS, in 2012, the nation's commercial marketplace has drastically changed, and
1.11online sales are now worth $150 billion annually; and
1.12WHEREAS, although consumers are not officially excused from paying sales taxes on
1.13online sales, the overwhelming majority do not pay sales tax on making an online purchase, and
1.14a University of Tennessee study concluded that billions of state sales tax dollars are lost due
1.15to nonpayment; and
1.16WHEREAS, not only are states denied much-needed revenue during these difficult
1.17economic times, but local retailers must confront competition from huge merchandisers that
1.18lack the overhead expenses of a traditional store and are effectively offering their merchandise
1.19tax-free; and
1.20WHEREAS, although in 1992, the United States Supreme Court forbade the state of North
1.21Dakota from collecting sales taxes from the Quill Corporation, the court held that Congress
2.1could enact legislation granting the states the authority to collect sales taxes from retailers with
2.2no physical presence in a state; and
2.3WHEREAS, in order to establish an administrative foundation for the universal collection
2.4of state sales taxes, many states, including Minnesota, have adopted the Streamlined Sales and
2.5Use Tax Agreement; and
2.6WHEREAS, nationwide, over 1,800 online or remote sellers are now voluntarily collecting
2.7state sales tax, and although this is a positive step, it does not address the problem of the
2.8nonpayment of state sales taxes comprehensively; and
2.9WHEREAS, H.R.3179, the Marketplace Equity Act, was introduced on October 12, 2011
2.10by United States Representatives Steve Womack (R-AR) and Jackie Speier (D-CA) and S.1832,
2.11the Marketplace Fairness Act, was introduced on November 9, 2011, by United States Senators
2.12Michael Enzi (R-WY), Richard Durbin (D-IL), and Lamar Alexander (R-TN); and
2.13WHEREAS, the economic vitality of the states demands that Congress enact the
2.14Marketplace Equity Act or the Marketplace Fairness Act before final adjournment of the 112th
2.15Congress; NOW, THEREFORE,
2.16BE IT RESOLVED by the Legislature of the State of Minnesota that it urges the United
2.17States Congress to enact legislation necessary to provide states the power to enforce collection of
2.18existing taxes.
2.19BE IT FURTHER RESOLVED that the United States Congress is urged to pass the
2.20Marketplace Equity Act or the Marketplace Fairness Act.
2.21BE IT FURTHER RESOLVED that the Secretary of State of the State of Minnesota is
2.22directed to prepare copies of this memorial and transmit them to United States Senators Michael
2.23Enzi, Richard Durbin, and Lamar Alexander, United States Representatives Steve Womack and
2.24Jackie Speier, and Minnesota's Senators and Representatives in Congress.
1.2memorializing Congress to pass the Marketplace Equity Act or the Marketplace
1.3Fairness Act.
1.4WHEREAS, in 1992, the United States Supreme Court issued its decision in the case of
1.5Quill Corporation v. North Dakota, ruling that states could not collect sales taxes from businesses
1.6that lacked a physical presence within their borders; and
1.7WHEREAS, this ruling was based on the theory that states' collection of sales taxes on
1.8these businesses was a burden on interstate commerce; and
1.9WHEREAS, at the time of the ruling, the decision primarily affected catalogue sales; and
1.10WHEREAS, in 2012, the nation's commercial marketplace has drastically changed, and
1.11online sales are now worth $150 billion annually; and
1.12WHEREAS, although consumers are not officially excused from paying sales taxes on
1.13online sales, the overwhelming majority do not pay sales tax on making an online purchase, and
1.14a University of Tennessee study concluded that billions of state sales tax dollars are lost due
1.15to nonpayment; and
1.16WHEREAS, not only are states denied much-needed revenue during these difficult
1.17economic times, but local retailers must confront competition from huge merchandisers that
1.18lack the overhead expenses of a traditional store and are effectively offering their merchandise
1.19tax-free; and
1.20WHEREAS, although in 1992, the United States Supreme Court forbade the state of North
1.21Dakota from collecting sales taxes from the Quill Corporation, the court held that Congress
2.1could enact legislation granting the states the authority to collect sales taxes from retailers with
2.2no physical presence in a state; and
2.3WHEREAS, in order to establish an administrative foundation for the universal collection
2.4of state sales taxes, many states, including Minnesota, have adopted the Streamlined Sales and
2.5Use Tax Agreement; and
2.6WHEREAS, nationwide, over 1,800 online or remote sellers are now voluntarily collecting
2.7state sales tax, and although this is a positive step, it does not address the problem of the
2.8nonpayment of state sales taxes comprehensively; and
2.9WHEREAS, H.R.3179, the Marketplace Equity Act, was introduced on October 12, 2011
2.10by United States Representatives Steve Womack (R-AR) and Jackie Speier (D-CA) and S.1832,
2.11the Marketplace Fairness Act, was introduced on November 9, 2011, by United States Senators
2.12Michael Enzi (R-WY), Richard Durbin (D-IL), and Lamar Alexander (R-TN); and
2.13WHEREAS, the economic vitality of the states demands that Congress enact the
2.14Marketplace Equity Act or the Marketplace Fairness Act before final adjournment of the 112th
2.15Congress; NOW, THEREFORE,
2.16BE IT RESOLVED by the Legislature of the State of Minnesota that it urges the United
2.17States Congress to enact legislation necessary to provide states the power to enforce collection of
2.18existing taxes.
2.19BE IT FURTHER RESOLVED that the United States Congress is urged to pass the
2.20Marketplace Equity Act or the Marketplace Fairness Act.
2.21BE IT FURTHER RESOLVED that the Secretary of State of the State of Minnesota is
2.22directed to prepare copies of this memorial and transmit them to United States Senators Michael
2.23Enzi, Richard Durbin, and Lamar Alexander, United States Representatives Steve Womack and
2.24Jackie Speier, and Minnesota's Senators and Representatives in Congress.
