HF 2031

as introduced - 87th Legislature (2011 - 2012) Posted on 02/23/2012 02:59pm

A bill for an act
relating to sales and use tax; exempting nonbusiness purchases made over the
Internet; amending Minnesota Statutes 2010, section 297A.67, by adding a
subdivision.

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

Section 1.

Minnesota Statutes 2010, section 297A.67, is amended by adding a
subdivision to read:

new text begin Subd. 33. new text end

new text begin Personal Internet purchases. new text end

new text begin (a) Sales and purchases of products
or services made over the Internet are exempt provided that the product or service is
delivered to the purchaser either (1) electronically, or (2) through a common carrier.
Purchases or sales where the consumer takes delivery of the good or service on premises
owned or controlled by the seller or where the seller uses its own vehicles to deliver the
good or service to the purchaser are not included in this exemption.
new text end

new text begin (b) The exemption in this subdivision does not include electronic purchases of
goods and services for business purposes. For purposes of this subdivision, "purchases of
goods and services for business purposes" means the purchase of any product or good
that qualifies as an ordinary and necessary business expense that is deductible under the
Internal Revenue Code or must be capitalized and that may be deducted under depreciation
or amortization rules under the Internal Revenue Code.
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, 2012.
new text end