HF 2014

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to taxation; imposing a gross receipts tax on
certain large retail establishments; proposing coding
for new law in Minnesota Statutes, chapter 295.

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

Section 1.

new text begin [295.61] LARGE RETAIL ESTABLISHMENT TAX.
new text end

new text begin Subdivision 1. new text end

new text begin Imposition; rate. new text end

new text begin A retail gross receipts
tax is imposed on sellers from a single taxable establishment,
located in this state, with gross receipts from retail sales of
consumer goods that exceed $20,000,000 in a calendar year. This
tax is in addition to the tax imposed under chapter 297A. The
rate of tax on gross receipts from retail sales of consumer
goods for the calendar year is as follows:
new text end

new text begin (1) over $20,000,000 through $30,000,000, one percent;
new text end

new text begin (2) over $30,000,000 through $40,000,000, 1.5 percent; and
new text end

new text begin (3) all over $40,000,000, two percent.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section,
the following terms have the meanings given, unless the context
clearly indicates otherwise.
new text end

new text begin (b) "Consumer goods" means goods that are used or bought
for use primarily for personal, family, or household purposes,
but excludes:
new text end

new text begin (1) electricity;
new text end

new text begin (2) farm machinery;
new text end

new text begin (3) gasoline; and
new text end

new text begin (4) motor vehicles.
new text end

new text begin (c) "Employee compensation package" means the annual total
cost to the employer for an employee for:
new text end

new text begin (1) wages or salary;
new text end

new text begin (2) leave time, including vacation and sick time;
new text end

new text begin (3) insurance, including employer contributions for health,
life, disability, and dental insurance;
new text end

new text begin (4) retirement plan contributions or payments, including
employer contributions required by the federal Insurance
Contributions Act, and employer contributions to employee
savings, flexible spending, and similar plans; and
new text end

new text begin (5) any similar employee benefits identified by the
commissioner and published in a revenue notice.
new text end

new text begin (d) "Farm machinery" means farm machinery exempt from sales
tax under section 297A.69, subdivision 4, clause (1).
new text end

new text begin (e) "Gross receipts" has the meaning given in section
297A.61, subdivision 8, but excludes gross receipts from sales
sourced to locations outside of Minnesota under section 297A.668.
new text end

new text begin (f) "Motor vehicle" has the meaning given in section
297B.01, subdivision 5.
new text end

new text begin (g) "Retailer" or "seller" has the meaning given in section
297A.61, subdivision 9.
new text end

new text begin (h) "Retail sale" has the meaning given in section 297A.61,
subdivision 4.
new text end

new text begin (i) "Taxable establishment" means a premises in which
retail sales of consumer goods are offered to the general public
and the retail sales are conducted by an employer that:
new text end

new text begin (1) provides each full-time, nonmanagement or
nonprofessional, entry-level employee with an employee
compensation package equivalent to less than $22,000 a year; or
new text end

new text begin (2) has more than 25 percent, when annualized, of its
employees working less than 40 hours per week.
new text end

new text begin Subd. 3. new text end

new text begin Payment. new text end

new text begin (a) Each retailer subject to tax under
this section must make estimated payments of the taxes for the
calendar year in quarterly installments to the commissioner by
April 15, July 15, October 15, and by January 15 of the
following calendar year.
new text end

new text begin (b) Estimated tax payments are not required if:
new text end

new text begin (1) the tax for the current calendar year is less than
$500; or
new text end

new text begin (2) the tax for the previous calendar year is less than
$500, if the retailer had a tax liability and was doing business
the entire year.
new text end

new text begin (c) Underpayment of estimated installments bear interest at
the rate specified in section 270.75, from the due date of the
payment until paid or until the due date of the annual return,
whichever comes first. An underpayment of an estimated
installment is the difference between the amount paid and the
lesser of:
new text end

new text begin (1) 90 percent of one quarter of the tax for the calendar
year; or
new text end

new text begin (2) one quarter of the total tax for the previous calendar
year if the retailer had a tax liability and was doing business
the entire year.
new text end

new text begin Subd. 4. new text end

new text begin Electronic funds transfer payments. new text end

new text begin A retailer
with an aggregate tax liability of $120,000 or more during a
fiscal year ending June 30 must remit all liabilities by
electronic means.
new text end

new text begin Subd. 5. new text end

new text begin Annual return. new text end

new text begin The retailer must file an annual
return reconciling the estimated payments by March 15 of the
following calendar year.
new text end

new text begin Subd. 6. new text end

new text begin Form of returns. new text end

new text begin The estimated payments and
annual return must contain the information and be in the form
prescribed by the commissioner.
new text end

new text begin Subd. 7. new text end

new text begin Application of other chapters. new text end

new text begin Unless
specifically provided otherwise by this section, the
enforcement, interest, appeal, criminal penalties, and refunds
provisions in chapter 289A, civil penalty provisions applicable
to withholding and sales taxes under section 289A.60, and
collection and rulemaking provisions under chapter 270, apply to
taxes imposed under this section.
new text end

new text begin Subd. 8. new text end

new text begin Interest on overpayments. new text end

new text begin Interest must be paid
on an overpayment refunded or credited to the taxpayer from the
date of payment of the tax 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 tax, whichever is later.
new text end

new text begin Subd. 9. new text end

new text begin Deposit of revenues. new text end

new text begin The commissioner shall
deposit all revenues, including penalties and interest, derived
from the tax imposed by this section in the general fund.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales made
after June 30, 2005, except for purposes of tax attributable to
gross receipts received in calendar year 2005, the dollar
amounts of the threshold and brackets under subdivision 1 are
one-half of the amounts listed.
new text end