HF 2224

as introduced - 87th Legislature (2011 - 2012) Posted on 02/13/2012 11:55am

A bill for an act
relating to taxation; use tax; authorizing certain taxpayers to file and pay use
tax with the income tax return; amending Minnesota Statutes 2010, sections
289A.08, subdivision 13; 289A.11, subdivision 1.

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

Section 1.

Minnesota Statutes 2010, section 289A.08, subdivision 13, is amended to
read:

Subd. 13.

Long and short forms; local use tax instructions.

new text begin (a) new text end The commissioner
shall provide a long form individual income tax return and may provide a short form
individual income tax return. The returns shall be in a form that is consistent with the
provisions of chapter 290, notwithstanding any other law to the contrary. The nongame
wildlife checkoff provided in section 290.431 and the dependent care credit provided in
section 290.067 must be included on the short form.

new text begin (b) new text end The commissioner must provide information on local use taxes in the individual
income tax instruction booklet. The commissioner must provide this information in the
same section of the booklet that provides information on the state use tax.

new text begin (c) The commissioner must provide a line on the individual income tax return
allowing the taxpayer to report state and local use tax liability for the previous calendar
year as provided in section 289A.11, subdivision 1. Individuals must attest to the amount
of their use tax liability. The commissioner must construct and provide in the instructions
a table that estimates state and local use tax liability by income brackets, with purchases
subject to use tax estimated to equal one percent of household income. Individuals who
elect to satisfy use tax liability by estimating it shall calculate the liability in accordance
with the use tax table. The estimated liability is applicable only to purchases of any
individual items each having a sale price no greater than $1,000. For each taxable item
with a sale price greater than $1,000, the actual use tax liability for each purchase must be
added to the amount of the estimated liability derived from the use tax table.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for individual income tax forms for
taxable years beginning after December 31, 2011.
new text end

Sec. 2.

Minnesota Statutes 2010, section 289A.11, subdivision 1, is amended to read:

Subdivision 1.

Return required.

(a) Except as provided in section 289A.18,
subdivision 4, for the month in which taxes imposed by chapter 297A are payable, or for
which a return is due, a return for the preceding reporting period must be filed with the
commissioner in the form and manner the commissioner prescribes. A person making
sales at retail at two or more places of business may file a consolidated return subject to
rules prescribed by the commissioner. In computing the dollar amount of items on the
return, the amounts are rounded off to the nearest whole dollar, disregarding amounts less
than 50 cents and increasing amounts of 50 cents to 99 cents to the next highest dollar.

(b) Notwithstanding this subdivision, a person who is not required to hold a sales tax
permit under chapter 297A and who makes annual purchases, for use in a trade or business,
of less than $18,500, or a person who is not required to hold a sales tax permit and who
makes purchases for personal use, that are subject to the use tax imposed by section
297A.63, may file an annual use tax return on a form prescribed by the commissioner. If a
person who qualifies for an annual use tax reporting period is required to obtain a sales tax
permit or makes use tax purchases, for use in a trade or business, in excess of $18,500
during the calendar year, the reporting period must be considered ended at the end of the
month in which the permit is applied for or the purchase in excess of $18,500 is made and
a return must be filed for the preceding reporting period.

(c) Notwithstanding paragraph (a), a person prohibited by the person's religious
beliefs from using electronics shall be allowed to file by mail, without any additional fees.
The filer must notify the commissioner of revenue of the intent to file by mail on a form
prescribed by the commissioner. A return filed under this paragraph must be postmarked
no later than the day the return is due in order to be considered filed on a timely basis.

new text begin (d) Notwithstanding this subdivision, a taxpayer eligible to file an annual use tax
return under this subdivision may file the return with the income tax return and pay (1)
the use tax liability under section 297A.63 and (2) any local use tax liability collected
with the state sales and use tax. The tax must be paid by April 15 following the close
of the taxable year.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for use tax liability incurred in
calendar year 2012 and thereafter.
new text end