Online Shopping in Minnesota Could Get More Expensive Soon
Hold on to your wallet-- you could soon be paying more here in Minnesota for any items you buy online. It's all thanks to a U.S. Supreme Court decision Thursday that says states may now be able to force online retailers to pay sales tax. Which means, depending upon which site you're buying something from, your purchase could increase anywhere from 6.875% (that's the Minnesota state sales tax rate) to 8.125% (the sales tax rate here in Rochester.) according to this Alavara tax rate calculator.
According to this MPR story, though, you might NOT see an increase in your online price-- if you're buying from major online retailers, like Amazon. They've already been collecting state sales tax from any state in which they have a physical facility-- including Minnesota.
But other popular online sites, like, say, Chewy.com (which we buy stuff from all the time for our dog and cats) could now be forced into added on that sales tax. It's one of several sites that hadn't already been adding on that pesky sales tax.
"Online sellers that haven't been charging sales tax on goods shipped to every state range from jewelry website Blue Nile to pet products site Chewy.com to clothing retailer L.L. Bean," the story noted.
It went on to say that around 12 states have so far already adopted laws to collect state sales taxes on online retailers, and that others are expected to follow, as well. The Minnesota Department of Revenue released this statement Friday morning:
“The department is pleased with the United States Supreme Court decision in South Dakota v. Wayfair. We are analyzing the Court’s decision to identify how it affects Minnesota and online retailers, remote sellers, and marketplace providers. We will work with our customers to ensure fair, efficient, and transparent implementation of this decision. We will provide further guidance within 30 days."
So, yeah-- get ready to pay more later this summer here in the Land of 10,000 Lakes.