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the motor vehicle sales tax on marked police <br />vehicles or firefighting vehicles, other city <br />vehicles are not exempt from the motor <br />vehicle sales tax. <br />Response: In order to ensure that <br />taxpayers receive the full benefit of the <br />local government sales tax exemption: <br />a) The exemption should apply to all <br />purchases made by local units of <br />government; <br />b) The process to receive the exemption <br />for construction materials should be <br />simplified or converted into a refund <br />process; and <br />c) The exemption should be extended to <br />all local government purchases that <br />would otherwise be subject to the <br />motor vehicle sales tax in Minn. Stat. <br />ch. 297B. <br />FF-9. Taxation of Electronic <br />Commerce <br />Issue: Sales over the Internet and through <br />other electronic means are projected to <br />increase exponentially over the next several <br />years. Under a Supreme Court decision <br />[Quill Corp. v. North Dakota (91-0194), 504 <br />U.S. 298 (1992)], retailers without a <br />physical presence in MN are not required to <br />collect state and local sales taxes on <br />purchases made by Minnesotans due, in part, <br />to the complexity of various state sales <br />taxes. States have tried to simplify the <br />administration of state and local sales taxes <br />through the Streamlined Sales Tax Project, <br />which has worked to develop sales tax <br />standards. Unfortunately, Congress has not <br />yet enacted legislation to overturn the <br />Supreme Court ruling. <br />Response: Federal tax policy should not <br />place main street businesses at a <br />competitive disadvantage to electronic <br />retailers, must not jeopardize repayment <br />of bonds backed by state and local sales <br />tax revenues, and should ensure stability <br />in state and local revenues. To address the <br />challenges created by the growth of <br />electronic commerce, the League of <br />Minnesota Cities supports the multi -state <br />effort to develop a streamlined sales tax <br />system. <br />The League also supports federal <br />legislation, such as the Marketplace <br />Fairness Act and the Remote <br />Transactions Parity Act, which would <br />provide congressional authority for states <br />that comply with the Streamlined Sales <br />and Use Tax Agreement to require <br />remote retailers to collect and remit state <br />sales taxes. Until Congress acts, the <br />League supports the 2017 Minnesota <br />legislative changes that broaden the <br />definition of retailers, affiliates and <br />related parties in order to expand sales <br />tax collection responsibility. <br />FF-10. Local Lodging Taxes <br />Issue: In 2011, the legislature amended <br />Minn. Stat. § 297A.61 to define <br />accommodation intermediaries and clarified <br />that their services are subject to the state <br />sales tax as part of the tax imposed on <br />lodging. Local lodging taxes collected by <br />the state for local units of government under <br />Minn. Stat. § 469.190, subd. 7, also clearly <br />apply to services provided by these <br />accommodation intermediaries since these <br />taxes are required under Minn. Stat. § <br />270C.171 to use the definition for tax base <br />contained in the general sales tax statute. <br />Since 2011, some accommodation <br />intermediaries have not been collecting and <br />remitting locally -administered lodging taxes <br />based on the full cost of the accommodation <br />plus the accommodation intermediary <br />services. There are currently 120 cities and <br />towns that individually or jointly impose <br />League of Minnesota Cities <br />2018 City Policies Page 107 <br />