Reed Smith Client Alerts

The Minnesota Legislature passed HF1 to impose sales and use tax collection obligations on “marketplace providers”–defined broadly to capture online websites that facilitate sales of tangible personal property from retailers to Minnesota-customers. If signed by the governor, this legislation would be the first in the country to impose collection obligations on marketplace providers. It would become effective July 1, 2019 or when the U.S. Supreme Court overturns Quill Corp. v. North Dakota.

Summary of Legislation

On May 25, 2017, the Minnesota Legislature passed HF1, a bill to impose a sales and use tax collection obligation on “marketplace providers.” Just two days prior, the bill was first introduced in the House of Representatives. And after voting to pass the legislation, the bill was sent to the Senate on the same day. The bill passed both chambers with more than 50% support, and now proceeds to the governor for signature.