HF 1062

as introduced - 88th Legislature (2013 - 2014) Posted on 02/28/2013 10:04am

A bill for an act
relating to taxation; requiring reporting of nonwage payments to construction
service providers; amending Minnesota Statutes 2012, sections 270B.14,
subdivision 2; 289A.12, by adding a subdivision; 289A.18, subdivision 1.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 270B.14, subdivision 2, is amended to read:

Subd. 2.

Disclosure to Department of Employment and Economic Development.

(a) Data relating to individuals are treated as follows:

(1) Return information may be disclosed to the Department of Employment and
Economic Development to the extent provided in clause (2) and for the purposes provided
in clause (3).

(2) The data that may be disclosed is limited to the amount of gross income earned by
an individual, the total amounts of earnings from each employer, and the employer's name.

(3) Data may be requested pertaining only to individuals who have claimed benefits
under sections 268.03 to 268.23 and only if the individuals are the subject of investigations
based on other information available to the Department of Employment and Economic
Development. Data received may be used only as set forth in section 268.19, subdivision
1, paragraph (b).

(b) Data pertaining to corporations or other employing units may be disclosed to
the Department of Employment and Economic Development to the extent necessary
for the proper enforcement of chapter 268.

new text begin (c) Data pertaining to returns required by section 289A.12, subdivision 18, regarding
nonwage payments to construction service providers, may be disclosed to the Department
of Employment and Economic Development to the extent necessary for the proper
enforcement of chapter 268.
new text end

Sec. 2.

Minnesota Statutes 2012, section 289A.12, is amended by adding a subdivision
to read:

new text begin Subd. 18. new text end

new text begin Nonwage payments to construction service providers. new text end

new text begin (a) All
persons engaged in a trade or business and making payment in the course of such a
trade or business to another person of $600 or more in any taxable year for performing
construction services shall file an annual report of such payments on a form prescribed by
the commissioner. The report must include:
new text end

new text begin (1) the name, address, and tax identification number of the payor;
new text end

new text begin (2) the name, address, and tax identification number of the construction service
provider;
new text end

new text begin (3) the total amount that the payor paid to the construction service provider in the
taxable year; and
new text end

new text begin (4) any other information required by the commissioner.
new text end

new text begin (b) For the purposes of this subdivision, the following terms have the meanings
given to them:
new text end

new text begin (1) "construction services" includes, but is not limited to, the erection, excavation,
installation, alteration, addition, modification, repair, improvement, demolition, and
dismantling or removal of all or any part of a building, structure, dock wharf, surface, or
subsurface construction on or attached to any real property;
new text end

new text begin (2) "construction service provider" means a person performing construction services;
new text end

new text begin (3) "payment" does not include wages paid to an employee of the payor; and
new text end

new text begin (4) "person" includes an individual, corporation, partnership, association, or limited
liability company.
new text end

new text begin (c) The requirements of this subdivision do not apply to any payment for construction
services by a person whose business plan does not include the contracting of construction
services while in the normal course of business.
new text end

new text begin (d) If the payment to the construction service provider includes payment for
materials and equipment as well as construction services, then those payments for
materials and equipment must also be reported.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2012.
new text end

Sec. 3.

Minnesota Statutes 2012, section 289A.18, subdivision 1, is amended to read:

Subdivision 1.

Individual income, fiduciary income, corporate franchise, and
entertainment taxes; partnership and S corporation returns; information returns;
mining company returns.

The returns required to be made under sections 289A.08 and
289A.12 must be filed at the following times:

(1) returns made on the basis of the calendar year must be filed on April 15 following
the close of the calendar year, except that returns of corporations must be filed on the due
date for filing the federal income tax return;

(2) returns made on the basis of the fiscal year must be filed on the 15th day of the
fourth month following the close of the fiscal year, except that returns of corporations
must be filed on the due date for filing the federal income tax return;

(3) returns for a fractional part of a year must be filed on the due date for filing the
federal income tax return;

(4) in the case of a final return of a decedent for a fractional part of a year, the return
must be filed on the 15th day of the fourth month following the close of the 12-month
period that began with the first day of that fractional part of a year;

(5) in the case of the return of a cooperative association, returns must be filed on or
before the 15th day of the ninth month following the close of the taxable year;

(6) if a corporation has been divested from a unitary group and files a return for
a fractional part of a year in which it was a member of a unitary business that files a
combined report under section 290.17, subdivision 4, the divested corporation's return
must be filed on the 15th day of the third month following the close of the common
accounting period that includes the fractional year;

(7) returns of entertainment entities must be filed on April 15 following the close of
the calendar year;

(8) returns required to be filed under section 289A.08, subdivision 4, must be filed
on the 15th day of the fifth month following the close of the taxable year;

(9) returns of mining companies must be filed on May 1 following the close of the
calendar year; deleted text begin and
deleted text end

(10) returns required to be filed with the commissioner under section 289A.12,
subdivision 2, 4 to 10, or 16 must be filed within 30 days after being demanded by the
commissioner deleted text begin . deleted text end new text begin ; and
new text end

new text begin (11) returns required to be filed with the commissioner under section 289A.12,
subdivision 18, must be filed by the payor with the commissioner, with a copy sent to the
construction service provider, on or before January 31 following the taxable year in which
the payment was made.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after
December 31, 2012.
new text end