During the interim, the Sales and Use Tax Simplification Task Force and the Legislative Oversight Committee Concerning Tax Policy met to discuss various pieces of tax policy. The Chamber has been following both committees and has a representative on the Simplification Task Force. Below are brief summaries of the bill concepts brought by each committee. It should be noted that the bills have just begun the drafting process and Chamber staff will continue to stay engaged to mitigate any negative impacts on business.
Sales and Use Tax Simplification Task Force
The Committee requested several proposals. One is a bill that crafts hold harmless language that would require local jurisdictions to honor the state address look-up tool as part of the Sales and Use Tax System (SUTS) agreement. The Department of Revenue also asked for legislation to simplify their collection of local sales taxes. Legislation to look at developing local threshold(s) that would allow for less frequent remittances will also be drafted. Finally, the committee asked for legislation to improve the availability of information regarding lodging tax and certain use taxes, and legislation to contemplate standardizing lodging tax definitions among home rule municipalities.
Legislative Oversight Committee Concerning Tax Policy
The committee requested bill drafts on a wide range of issues. These included modifying, updating, or repealing certain state tax credits and expenditures, creating a permanent fund for state severance tax, and extending the earned income tax credit for an additional three years. Additionally, the committee will again look at the property taxation of short-term rentals. The committee is also drafting legislation regarding the supreme court decision Tyler v. Hennepin County and government seizure of property for unpaid taxes when the value of the property seized is greater than the tax debt.