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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: The 2018 U.S. Supreme Court <br />decision [South Dakota v. Wayfair, Inc., 585 <br />U.S. (2018)] overturned two earlier <br />Supreme Court decisions [Quill Corp. v. <br />North Dakota, 504 U.S. 298 (1992) and <br />National Bellas Hess v. Department of <br />Revenue, 386 U.S. 753 (1967)] that had <br />prevented states from requiring retailers <br />without a physical presence from collecting <br />state and local sales taxes on purchases <br />made by state residents and businesses. <br />A group of 23 states participating in the <br />Streamlined Sales Tax Project have worked <br />together for more than 18 years to simplify <br />the administration of state and local sales <br />taxes and reduce the administrative burden <br />on retailers. The success of this project was <br />referenced in the Wayfair decision. <br />Despite the Supreme Court's Wayfair <br />decision, new legal challenges could be filed <br />by remote retailers or Congress could <br />intervene to address remaining sales tax <br />administration issues including the fact that <br />more than 20 states with sales taxes have not <br />adopted the SSUTP standards. <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 />135 <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 continues to support the <br />multi -state effort to develop a streamlined <br />sales tax system. <br />Should Congress intervene, the League <br />would support nation-wide sales tax <br />administration standards based on the <br />model developed by the Streamlined Sales <br />Tax Project. The League will oppose <br />Congressional efforts to reverse remote <br />retailer collection requirements. <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 />lodging taxes for tourism purposes under <br />Minn. Stat. § 469.190. Another five cities <br />impose a lodging tax that is administered <br />locally under special law. Four local lodging <br />taxes are currently administered by the state. <br />Response: The League of Minnesota <br />Cities supports legislation that will clarify <br />that all lodging taxes, whether <br />