Want to help with the state budget problem? Start to collect sales tax on Internet and other mail order purchases.
These out-of-state companies assert that they should be exempt from collection because they do not have a physical presence. However, the retailers who do have a physical presence collect and remit sales tax, pay property tax, pay Minnesota income tax and hire people who pay sales tax, pay property tax and pay Minnesota income tax.
And what do we do? We put them at a competitive disadvantage due to the added cost of sales tax on purchases made at their stores. I know a number of people who boast that they do shopping online because they do not have to pay the Minnesota sales tax on their purchases. And these are some of the same people who are complaining about the reduction in state aid for their schools and other Minnesota funded projects.
If it is a "burden" for these Internet retailers to collect and remit, remember it is also a burden for our local establishments to do the same.
Lawrence Hoff
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Rochester
