Under the current rule, online sellers have been able to escape collecting state sales taxes, creating an uneven playing field for brick-and-mortar retailers; the Supreme Court’s decision to consider the appeal may change that rule

Klobuchar is an original co-sponsor of legislation – the Marketplace Fairness Act – that would give states the option to require out-of-state businesses, including online retailers, to collect sales taxes that they are already owed

WASHINGTON, DC – U.S. Senator Amy Klobuchar today released the following statement after the Supreme Court released its decision to consider South Dakota’s appeal in the case of South Dakota v Wayfair and revisit the rule that makes it harder for local Minnesota businesses to compete against online retailers. Under the current rule, online sellers have been able to escape collecting state sales taxes, creating an uneven playing field for brick-and-mortar retailers. The Supreme Court’s decision today opens the door to changing that rule. 

“From a mom-and-pop store on Main Street to Target and Best Buy, businesses in Minnesota can’t compete if they don’t have a level playing field against online retailers,” Klobuchar said. “Unfortunately, the Supreme Court’s previous ruling placed Minnesota businesses at a severe disadvantage that not only costs our state money but unfairly picks winners and losers among businesses. Today’s decision by the Supreme Court may be a step towards ensuring all businesses are playing by the same rules.”  

Klobuchar is an original cosponsor of the bipartisan Marketplace Fairness Act, which would give states the authority to require out-of-state businesses, including online retailers, to collect sales taxes if a state meets certain requirements, including an easily identifiable tax rate, uniform tax-base rules, and centralized filing and remittance of the sales taxes withheld.

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