Minnesota Introduces Bills Proposing to Tax Some Internet Sales

The Minnesota House of Representatives and the Minnesota Senate have both introduced bills that are similar to the New York “Amazon law.” In both bills, a retailer is presumed to have a solicitor in the state if it enters into an agreement with a resident under which the resident, for a commission or other consideration, directly or indirectly refers potential customers, whether by link on an internet web site, or otherwise, to the seller. This presumption will only apply if the total gross receipts from customers in the state who were referred by these resident solicitors are at least $10,000 in the 12-month period proceeding the calendar quarter in which the sale was made. The presumption can be rebutted by proof that the resident solicitor did not engage in any solicitation that would satisfy the U.S. Constitution during the 12-month period in question. (H.F. 401 and S.F. 282, as introduced in the Minnesota House of Representatives and the Senate on January 29, 2009)

Posted on March 3, 2009