REP. ROBBINS STATEMENT ON MAIN STREET RELIEF ACT
Proposals include grants to businesses, sales tax relief, and other relief
ST. PAUL, MN — On Tuesday a working group of House Republicans unveiled the Main Street Relief Act, a package of proposals designed to help Minnesota businesses closed or limited by the latest executive orders from Gov. Tim Walz.
The package is headlined by a $400 million grant fund designed to help restaurants, bars, breweries, bowling alleys, gyms, and other establishments that were ordered to close or limit operations last week with less than 48 hours notice.
"When the Governor announced bars and restaurants would start closing at 10:00 p.m., we could see that another shutdown was likely coming, so we began working on a relief package immediately," said Rep. Kristin Robbins, R-Maple Grove. "Community spread is serious, and we need to ensure that our hospitals and long-term care facilities have enough staff to care for patients and keep beds available. But if the government is going to require businesses to shut down, we must also be ready to provide relief. Being closed during the holidays means they will be losing some of their biggest revenue weeks of the year. Our proposal helps offset some of that revenue loss through grants, a sales tax holiday, increasing the amount of beer/wine that can be sold for carry-out, and relief on state licensing fees. The hospitality industry collects 18% of the state's sales taxes and employs more than 300,000 Minnesotans."
The Main Street Relief Act includes:
- GRANT PROGRAM FOR BUSINESSES: A $400 million grant program for businesses who have been impacted most by the recent executive orders. This program would be administered through the counties — many of whom have already set up grant programs to distribute CARES Act funding.
- SALES TAX RELIEF: A 3 month sales tax holiday for businesses that have been limited to takeout or curbside-only operations, and a 3 month sales tax holiday that begins upon reopening for businesses that are currently mandated to be closed altogether.
- LIQUOR FLEXIBILITY: Temporarily doubling the current cap for takeout beer, wine, and liquor sales. In addition, granting flexibility to breweries and others to sell their product in containers up to 64 ounces.
- LICENSE FEE RELIEF: Waiving the state fee for establishments who sell alcohol until 2AM — currently in addition to license fees paid to the county, restaurants, bars, and other establishments pay a separate fee to the state to make sales between 1 AM and 2AM. Legislators also encouraged cities and counties to work to provide as much relief as possible from liquor and other license fees collected at the local level.
- OPEN OUR FITNESS CENTERS AND GYMS: Minnesota gyms and fitness centers have taken extreme caution to keep their clients safe during the pandemic, and physical activity is critical to helping Minnesotans maintain a healthy lifestyle. Available data does not support keeping our gyms closed — gyms should be allowed to reopen prior to the current December 18th deadline.
Rep. Robbins urged the governor to convene meetings with all four legislative caucuses so lawmakers could move forward together on a relief package.
"These programs will not come close to making up the revenue lost because they were closed, but it might keep them from going under on December 30th. Most of these businesses have property taxes, insurance premiums and rent payments due this month - many won't make it without immediate help," Robbins concluded.
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