2008 Election Recap
December 06, 2008
Key Issues and Policy Positions
The Minnesota Retailers Association focuses on key issues at the State Capitol which are important to retailers. The issues are established and prioritized by the Legislative Committee which meets every November to adopt positions. Below is a sampling of our key issues and policy positions for 2009. To see our complete document of policy positions, please click here.
Minimum Wage
MnRA consistently opposes efforts to increase the minimum wage above the federal level and opposes “living wage” mandates which also require health benefits. MnRA believes that market forces should determine wage levels. MnRA also opposes indexing mandated wage levels to some outside indices. MnRA opposed efforts in 2008 to raise the minimum wage to $7.75 per hour.
General Sales Tax
MnRA opposes increasing the sales tax rate or expanding the sales tax base to clothing or other goods unless the expansion is necessary to comply with the Streamlined Sales Tax Project. Such expansions would be harmful to retailers and break the covenant originally made by the state when the sales tax was initiated. MnRA supports a reduction in the sales tax rate.
June Accelerated Sales Tax
MnRA has worked tirelessly to eliminate the June accelerated sales tax payment. This tax gimmick is leftover from the fiscal crisis the state faced in the 1980's. It is an accounting nightmare for retailers and itdoes not provide a structural fix to budget problems, while it also encourages the state to deficit spend. Inshort, it is horrendous tax policy. MnRA successfully passed legislation in 2001 to reduce the percentageretailers must remit early and set a sunset date for its complete elimination. Unfortunately, because of thesize of past deficits, the legislature has increased the June Estimated Sales Tax to 90%, effective for June2009 tax liability. The legislature needs to look at the long term. The JAST was shortsighted when it wasinstituted, and, to push the date back or recall the repeal is just as shortsighted now.
Local Option Sales Tax
MnRA continues to oppose local option sales taxes as this policy causes a patchwork of taxing jurisdictions which lead to competitive problems for communities, as well as confusion to consumers and the public. Although MnRA opposes the Local Option Sales tax, it believes that if proposed, it should be subject to a vote, be for a specific purpose, and once that purpose is paid for, the tax should be eliminated. MnRA also actively supports the permanent reduction of the sales tax.
Sales Tax Holiday for Energy Efficient Products
Many states provide a sales tax holiday for the sale of energy efficient products. Minnesota should encourage the sale of energy efficient products by allowing at least some reduction in the sales tax.
Vendor Collection Allowance
Each legislative session, MnRA reminds legislators of the cost to retailers in collecting and remitting the sales tax. Merchants in approximately 28 states are allowed to retain some portion of the sales taxes collected for their state, which serves to offset some of the administrative cost of collecting and remitting the tax. Nationwide, the average administrative cost to retailers is 3.09% of the total amount of the sales tax collected.
Pharmacy
MnRA works as part of the Community Pharmacy Committee to evaluate legislative proposals, review and take action on Board of Pharmacy rules, and to propose legislative initiatives. MnRA has consistently opposed cuts to Medicaid drug reimbursement and advocates for a stronger role for pharmacy in the health care delivery system with ideas such as expanded vaccination authority.
Marine and Motor Sports
MnRA supports legislation that provides protection to Motor Sports Dealers and Marine Dealers from arbitrary termination of their dealerships without cause along with protection for adequate reimbursement for parts and labor offered by an authorized dealer.
Organized Retail Crime
MnRA supports passage of a strong Organized Retail Crime law which will enable law enforcement to effectively apprehend and prosecute criminals. Additionally there is a need to deter criminals’ use of online auction sites as a lucrative and anonymous market to resell their stolen product. MnRA also supports efforts to reverse the recently passed law that raised the threshold for stolen property from $500-$1,000 in order to be prosecuted as a felony.
Plastic Bag Recycling
MnRA also opposes bans on the use of plastic bags where programs can be effectively implemented to recycle that product. MnRA also opposes bans on products when it is not based on sound science. The Minnesota legislature considered in 2008 the possibility of forcing businesses that provide plastic bags to customers to recycle those plastic bags as well.