Minnesota Department of Revenue part of nationwide program to collect sales tax more efficiently

As part of on-going efforts to promote compliance and cooperation with businesses in other states, the Minnesota Department of Revenue highlighted information released by the Streamlined Sales Tax Governing Board. Since 2005, sales tax collected from sellers registered through the Streamlined Sales Tax Registration System exceeded $1 billion.

“Minnesota is proud to be a part of the Streamlined Sales and Use Tax Agreement. It has helped us simplify the process for collecting sales tax from out-of-state businesses while promoting voluntary compliance,” said Revenue Commissioner Myron Frans. “Crossing the $1 billion mark is a major milestone and we hope that more states will join the agreement, making it easier for Congress to enact legislation that applies to the products and services sold by remote sellers throughout the United States.”

An initiative from Gov. Mark Dayton to collect sales tax from remote sellers doing business in Minnesota through sponsors or affiliates has gained wide support from the business community in the state. This “affiliate nexus,” or “Amazon” bill would help level the playing field for Main Street businesses in Minnesota, allowing them to compete more fairly with online and mail order companies.

As one of 44 states taking part in the Streamlined Sales Tax Registration System, the Minnesota Department of Revenue’s sales tax collections accounted for nearly 5 percent of the total $1 billion collected.

The Streamlined Sales and Use Tax Agreement is the result of the cooperative effort of 44 states, the District of Columbia, local governments, tax administrators, legislators and the business community to simplify sales and use tax collection and administration by retailers and states. The agreement minimizes costs and administrative burdens on retailers that collect sales tax, particularly retailers operating in multiple states. It encourages "remote sellers" selling over the Internet and by mail order to collect tax on sales to customers living in the Streamlined states.

Additional information on Minnesota’s Streamlined Sales Tax activities can be found by visiting our website: http://www.revenue.state.mn.us/businesses/sut/Pages/streamlined_sales_tax.aspx

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