North Mankato City Council adjusts Internet tax loophole

North Mankato City Council adjusts Internet tax loophole

NORTH MANKATO, Minn. (KEYC) — The North Mankato City Council is adjusting a loophole that previously allowed Internet sales not to be taxed by local sales taxes.

The League of Minnesota Cities reached out to North Mankato to let them know about the loophole following South Dakota vs. Wayfair, a 2018 U.S. Supreme Court ruling that says states may charge tax on purchases made from out–of–state sellers, even if they don’t have a physical presence in the state.

Businesses that sell to cities with sales tax ordinances such as North Mankato should be aware of the city’s tax.

“Then it would come into play for wherever they’re shipping their goods, those people would then pay those sales taxes. So essentially, they have to keep track of numerous states and cities, whoever it might be, their sales tax," said Finance Director Kevin McCann.

Consumers in North Mankato will pay the city’s sales tax, which is set at half of one percent.

Copyright 2019 KEYC. All rights reserved.