On January 9, 2017, S.F. 45 was introduced in the Minnesota Senate. The bill expands the definition of "retailer maintaining a place of business in this state" to include, among other things, a retailer with a marketplace provider operating in the state. A marketplace provider is one who facilitates retail sales by the out-of-state retailer, by listing or advertising for sale the retailer's items or services in any forum, either directly or indirectly through agreements or arrangements with third parties who collect payment and transmit it to the retailer. Whether or not the marketplace provider receives payment for its service is immaterial.
We expect to see several more states advance legislation this year seeking to impose a tax collection obligation on e-commerce retailers. While e-commerce revenue will attract the most attention, we also expect some states to give serious consideration to expanding their tax base to include more services along with evaluating the revenue implications from the sharing economy.
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