Here's a fact sheet you can cite and include, with more information on the issue.
[STORE LETTERHEAD]
[DATE]
Dear [SENATOR][LAST NAME]:
As an independent bookseller based in [CITY], Minnesota, I am urging you to support SF0282, legislation that would clarify state laws to require non-Minnesota merchants with online affiliates in the state acting as sales agents on their behalf to collect sales tax on purchases shipped into Minnesota. This bill would play a significant role in leveling the playing field for Minnesota businesses and help secure needed revenue to support essential local services. In April 2008, New York State passed similar legislation, and, though the legislation was challenged by Amazon.com, a New York State Supreme Court judge dismissed the online retailer's lawsuit.
Each year, Minnesota is losing millions of dollars in sales tax revenue to online retailers, many of whom have nexus in the states due to affiliate relationships. This shortfall will only grow worse as online shopping continues its robust growth. Currently, Minnesota-based businesses like mine are competing against out-of-state online retailers that can entice shoppers with so-called "tax-free shopping." When we allow these online retailers to continue their sales tax avoidance practices, Minnesota's citizens are the primary losers, as potential tax revenue is uncollected -- monies that fund such essential services as schools and first-responders.
I believe it is indisputable that any out-of-state online retailer that has one or more affiliates based in Minnesota, which clearly act as solicitors on the company's behalf, has nexus in our state -- and should therefore be charging sales tax. Minnesota booksellers that have e-commerce operations collect and remit sales tax and so should non-Minnesota merchants.
Importantly, I am not discussing any new "Internet taxes." I am simply asking you to equitably enforce existing tax laws by supporting SB806, which clarifies existing sales tax laws to require out-of-state merchants with nexus in the state -- via office, warehouse, sales agent, or affiliate link -- to collect and remit sales tax on purchases made by Minnesota residents.
Thank you for your consideration.
Sincerely,
[NAME, STORE NAME & ADDRESS]