HF 1664

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 01:53am

A bill for an act
relating to taxation; sales and use; amending the occasional sales exclusion
to omit watercraft; amending Minnesota Statutes 2008, sections 86B.401,
subdivision 12; 297A.67, subdivision 23.

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

Section 1.

Minnesota Statutes 2008, section 86B.401, subdivision 12, is amended to
read:

Subd. 12.

Proof of sales tax payment.

new text begin (a) new text end A person applying for initial licensing of
a watercraft new text begin , or applying for a duplicate license due to change of ownership as required
in subdivision 8, new text end must provide a watercraft purchaser's certificate, showing a complete
description of the watercraft, the seller's name and address, the full purchase price of the
watercraft, and the trade-in allowance, if any. The certificate must include information
showing either (1) that the sales and use tax under chapter 297A was paid or (2) the
purchase was exempt from tax under chapter 297A. The commissioner of public safety,
in consultation with the commissioner and the commissioner of revenue, shall prescribe
the form of the certificate.

new text begin (b) new text end The certificate is not required if the applicant provides a receipt, invoice, or other
document that shows the watercraft was purchased from a retailer maintaining a place of
business in this state as defined in section 297A.66, subdivision 1.

new text begin (c) If the applicant cannot meet the provisions in either paragraph (a) or (b), the
applicant must provide a receipt, invoice, or other document from the previous owner
certifying the amount paid for the watercraft, whether in money or other consideration,
and remit the applicable use tax along with the license fee.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2009.
new text end

Sec. 2.

Minnesota Statutes 2008, section 297A.67, subdivision 23, is amended to read:

Subd. 23.

Occasional sales.

Isolated and occasional sales in Minnesota not made in
the normal course of business of selling that kind of property or service are exempt. The
storage, use, or consumption of property or services acquired as a result of such a sale is
exempt. This exemption does not apply to sales of tangible personal property primarily
used in a trade or business new text begin or to watercraft licensed under chapter 86B new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2009.
new text end