Minnesota Legislature
HF 580
as introduced - 93rd Legislature (2023 - 2024) Posted on 01/25/2023 05:36pm
Current Version - as introduced
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A bill for an act
relating to transportation; imposing a fee on the delivery of tangible personal
property; allocating funds; amending Minnesota Statutes 2022, sections 270C.15;
297A.61, subdivision 7; proposing coding for new law as Minnesota Statutes,
chapter 168E.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
new text begin
[168E.01] DEFINITIONS.
new text end
new text begin Subdivision 1. new text end
new text begin Scope. new text end
new text begin
As used in this chapter, the following terms have the meanings
given.
new text end
new text begin Subd. 2. new text end
new text begin Clothing. new text end
new text begin
"Clothing" has the meaning given in section 297A.67, subdivision
8.
new text end
new text begin Subd. 3. new text end
new text begin Commissioner. new text end
new text begin
"Commissioner" means the commissioner of revenue.
new text end
new text begin Subd. 4. new text end
new text begin Motor vehicle. new text end
new text begin
"Motor vehicle" has the meaning given in section 168.002,
subdivision 18.
new text end
new text begin Subd. 5. new text end
new text begin Retail delivery. new text end
new text begin
"Retail delivery" means a retail sale of tangible personal
property by a retailer for delivery by a motor vehicle to the purchaser at a location in
Minnesota in which the sale contains at least one item of tangible personal property that is
subject to taxation under chapter 297A, including the retail sale of clothing notwithstanding
the exemption from taxation for clothing under chapter 297A.
new text end
new text begin Subd. 6. new text end
new text begin Retail delivery fee. new text end
new text begin
"Retail delivery fee" means the fee imposed under section
168E.03 on retail deliveries.
new text end
new text begin Subd. 7. new text end
new text begin Retail sale. new text end
new text begin
"Retail sale" has the meaning given in section 297A.61, subdivision
4.
new text end
new text begin Subd. 8. new text end
new text begin Retailer. new text end
new text begin
"Retailer" means any person making sales, leases, or rental of personal
property or services within or into the state of Minnesota. Retailer includes a:
new text end
new text begin
(1) retailer maintaining a place of business in this state;
new text end
new text begin
(2) marketplace provider maintaining a place of business in this state, as defined in
section 297A.66, subdivision 1, paragraph (a);
new text end
new text begin
(3) retailer not maintaining a place of business in this state; and
new text end
new text begin
(4) marketplace provider not maintaining a place of business in this state, as defined in
section 297A.66, subdivision 1, paragraph (b).
new text end
new text begin Subd. 9. new text end
new text begin Tangible personal property. new text end
new text begin
"Tangible personal property" has the meaning
given in section 297A.61, subdivision 10.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2024.
new text end
Sec. 2.
new text begin
[168E.03] FEE IMPOSED.
new text end
new text begin Subdivision 1. new text end
new text begin Rate. new text end
new text begin
(a) A retailer who makes a retail delivery shall add to the price of
the retail delivery a retail delivery fee to be collected from the purchaser. The retailer must
remit the fee to the commissioner in the time and manner prescribed by the commissioner
in accordance with this chapter.
new text end
new text begin
(b) Beginning on January 1, 2024, through June 30, 2025, the retail delivery fee equals
$0.40 per retail delivery. Beginning on July 1, 2025, through June 30, 2027, the retail
delivery fee equals $0.45 per retail delivery. Beginning on July 1, 2027, and thereafter; the
retail delivery fee equals $0.50 per retail delivery.
new text end
new text begin
(c) The retail delivery fee must not be included in the sales price for purposes of
calculating tax owed under chapter 297A.
new text end
new text begin
(d) The retail delivery fee must be charged in addition to any other delivery fee. The
retailer must show the total of the retail delivery fee and other delivery fees as separate
items and distinct from the sales price and any other taxes or fees imposed on the retail
delivery on the purchaser's receipt, invoice, or other bill of sale.
new text end
new text begin Subd. 2. new text end
new text begin Delivery. new text end
new text begin
Each retail sale is a single retail delivery regardless of the number
of shipments necessary to deliver the items of tangible personal property purchased.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2024.
new text end
Sec. 3.
new text begin
[168E.05] EXEMPTIONS.
new text end
new text begin Subdivision 1. new text end
new text begin Certain transactions. new text end
new text begin
A retail delivery that includes only tangible personal
property that is exempt from taxation under chapter 297A, except tangible personal property
that is exempt as clothing under chapter 297A, is exempt from the retail delivery fee.
new text end
new text begin Subd. 2. new text end
new text begin Certain entities. new text end
new text begin
A purchaser who is exempt from tax under chapter 297A is
exempt from the retail delivery fee.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2024.
new text end
Sec. 4.
new text begin
[168E.07] COLLECTION AND ADMINISTRATION.
new text end
new text begin Subdivision 1. new text end
new text begin Returns; payment of fees. new text end
new text begin
A retailer must report the fee on a return
prescribed by the commissioner and must remit the fee with the return. The return and fee
must be filed and paid using the filing cycle and due dates provided for taxes imposed under
chapter 297A.
new text end
new text begin Subd. 2. new text end
new text begin Administration. new text end
new text begin
Unless specifically provided otherwise by this section, the
audit, assessment, refund, penalty, interest, enforcement, collection remedies, appeal, and
administrative provisions of chapters 270C and 289A, that are applicable to taxes imposed
under chapter 297A, apply to the fee imposed under this chapter.
new text end
new text begin Subd. 3. new text end
new text begin Interest on overpayments. new text end
new text begin
The commissioner must pay interest on an
overpayment refunded or credited to the retailer from the date of payment of the fee until
the date the refund is paid or credited. For purposes of this subdivision, the date of payment
is the due date of the return or the date of actual payment of the fee, whichever is later.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2024.
new text end
Sec. 5.
new text begin
[168E.09] DEPOSIT OF PROCEEDS.
new text end
new text begin Subdivision 1. new text end
new text begin Costs deducted. new text end
new text begin
The commissioner shall retain an amount that does not
exceed the total cost of collecting, administering, and enforcing the retail delivery fee and
shall deposit the amount in the revenue department service and recovery special revenue
fund.
new text end
new text begin Subd. 2. new text end
new text begin Deposits. new text end
new text begin
The balance of proceeds shall be deposited as follows:
new text end
new text begin
(1) 60 percent must be deposited in the highway user tax distribution fund;
new text end
new text begin
(2) 36 percent must be deposited in the metropolitan area transit account under section
16A.88; and
new text end
new text begin
(3) four percent must be deposited in the greater Minnesota transit account under section
16A.88.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2024.
new text end
Sec. 6.
Minnesota Statutes 2022, section 270C.15, is amended to read:
270C.15 REVENUE DEPARTMENT SERVICE AND RECOVERY SPECIAL
REVENUE FUND.
A Revenue Department service and recovery special revenue fund is created for the
purpose of recovering the costs of furnishing government data and related services or
products, as well as recovering costs associated with collecting local taxes on salesnew text begin and the
retail delivery fee established under chapter 168Enew text end . All money collected under this section
is deposited in the Revenue Department service and recovery special revenue fund. Money
in the fund is appropriated to the commissioner to reimburse the department for the costs
incurred in administering the tax law or providing the data, service, or product. Any money
paid to the department as a criminal fine for a violation of state revenue law that is designated
by the court to fund enforcement of state revenue law is appropriated to this fund.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2024.
new text end
Sec. 7.
Minnesota Statutes 2022, section 297A.61, subdivision 7, is amended to read:
Subd. 7.
Sales price.
(a) "Sales price" means the measure subject to sales tax, and means
the total amount of consideration, including cash, credit, personal property, and services,
for which personal property or services are sold, leased, or rented, valued in money, whether
received in money or otherwise, without any deduction for the following:
(1) the seller's cost of the property sold;
(2) the cost of materials used, labor or service cost, interest, losses, all costs of
transportation to the seller, all taxes imposed on the seller, and any other expenses of the
seller;
(3) charges by the seller for any services necessary to complete the sale, other than
delivery and installation charges;
(4) delivery charges, except new text begin (i) new text end the percentage of the delivery charge allocated to delivery
of tax exempt property, when the delivery charge is allocated by using either deleted text begin (i)deleted text end new text begin (A)new text end a
percentage based on the total sales price of the taxable property compared to the total sales
price of all property in the shipment, or deleted text begin (ii)deleted text end new text begin (B)new text end a percentage based on the total weight of
the taxable property compared to the total weight of all property in the shipmentnew text begin , and (ii)
the retail delivery fee imposed under chapter 168Enew text end ; and
(5) installation charges.
(b) Sales price does not include:
(1) discounts, including cash, terms, or coupons, that are not reimbursed by a third party
and that are allowed by the seller and taken by a purchaser on a sale;
(2) interest, financing, and carrying charges from credit extended on the sale of personal
property or services, if the amount is separately stated on the invoice, bill of sale, or similar
document given to the purchaser; and
(3) any taxes legally imposed directly on the consumer that are separately stated on the
invoice, bill of sale, or similar document given to the purchaser.
(c) Sales price includes consideration received by the seller from third parties if:
(1) the seller actually receives consideration from a party other than the purchaser and
the consideration is directly related to a price reduction or discount on the sale;
(2) the seller has an obligation to pass the price reduction or discount through to the
purchaser;
(3) the amount of the consideration attributable to the sale is fixed and determinable by
the seller at the time of the sale of the item to the purchaser; and
(4) one of the following criteria is met:
(i) the purchaser presents a coupon, certificate, or other documentation to the seller to
claim a price reduction or discount when the coupon, certificate, or documentation is
authorized, distributed, or granted by a third party with the understanding that the third party
will reimburse any seller to whom the coupon, certificate, or documentation is presented;
(ii) the purchaser identifies himself or herself to the seller as a member of a group or
organization entitled to a price reduction or discount. A "preferred customer" card that is
available to any customer does not constitute membership in such a group; or
(iii) the price reduction or discount is identified as a third-party price reduction or discount
on the invoice received by the purchaser or on a coupon, certificate, or other documentation
presented by the purchaser.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective January 1, 2024.
new text end