HF 3112

as introduced - 83rd Legislature (2003 - 2004) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; replacing the additional sales 
  1.3             tax on alcoholic beverages on its expiration with an 
  1.4             equivalent gross earnings tax on alcoholic beverages; 
  1.5             appropriating money; proposing coding for new law in 
  1.6             Minnesota Statutes, chapter 295. 
  1.7   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.8      Section 1.  [295.70] [ALCOHOLIC BEVERAGE GROSS EARNINGS 
  1.9   TAX.] 
  1.10     Subdivision 1.  [IMPOSITION.] A gross earnings tax is 
  1.11  imposed on each person engaged in this state in the business of 
  1.12  selling, or offering to sell at retail, alcoholic beverages of 
  1.13  distilled spirits, wine, or fermented malt beverages containing 
  1.14  more than one-half of one percent alcohol by volume.  The tax 
  1.15  rate is 2.5 percent of gross revenues from retail sales of 
  1.16  alcoholic beverages. 
  1.17     Subd. 2.  [PAYMENT.] (a) Each business subject to the tax 
  1.18  imposed in subdivision 1 shall make estimated payments of the 
  1.19  taxes for the calendar year in quarterly installments to the 
  1.20  commissioner by April 15, July 15, October 15, and January 15 of 
  1.21  the following calendar year. 
  1.22     (b) Estimated tax payments are not required if: 
  1.23     (1) the tax for the current calendar year is less than 
  1.24  $500; or 
  1.25     (2) the tax for the previous calendar year is less than 
  1.26  $500, if the taxpayer had a tax liability and was doing business 
  2.1   the entire year. 
  2.2      (c) Underpayment of estimated installments bear interest at 
  2.3   the rate specified in section 270.75, from the due date of the 
  2.4   payment until paid or until the due date of the annual return, 
  2.5   whichever comes first.  An underpayment of an estimated 
  2.6   installment is the difference between the amount paid and the 
  2.7   lesser of (1) 90 percent of one-quarter of the tax for the 
  2.8   calendar year, or (2) one-quarter of the total tax for the 
  2.9   previous calendar year if the taxpayer had a tax liability and 
  2.10  was doing business the entire year. 
  2.11     Subd. 3.  [ELECTRONIC FUNDS TRANSFER PAYMENTS.] A taxpayer 
  2.12  with an aggregate tax liability of $120,000 or more during a 
  2.13  fiscal year ending June 30 must remit all liabilities by 
  2.14  electronic means. 
  2.15     Subd. 4.  [ANNUAL RETURN.] The taxpayer must file an annual 
  2.16  return reconciling the estimated payments by March 15 of the 
  2.17  following calendar year. 
  2.18     Subd. 5.  [FORM OF RETURNS.] The estimated payments and 
  2.19  annual return must contain the information and be in the form 
  2.20  prescribed by the commissioner. 
  2.21     Subd. 6.  [APPLICATION OF OTHER CHAPTERS.] Unless 
  2.22  specifically provided otherwise by this section, the 
  2.23  enforcement, interest, appeal, criminal penalties, and refunds 
  2.24  provisions in chapter 289A, civil penalty provisions applicable 
  2.25  to withholding and sales taxes under section 289A.60, and 
  2.26  collection and rulemaking provisions under chapter 270, apply to 
  2.27  taxes imposed under this section. 
  2.28     Subd. 7.  [APPROPRIATION.] All revenues, including 
  2.29  penalties and interest, derived from the tax imposed by this 
  2.30  section are appropriated to the counties of this state on a per 
  2.31  capita basis.  At least 50 percent of the amount appropriated to 
  2.32  each county must be used to fund chemical dependency treatment 
  2.33  programs.  The remaining balance of the appropriation must be 
  2.34  used to fund expenses related to problems caused by excessive 
  2.35  consumption of alcohol or other drugs, including, but not 
  2.36  limited to, law enforcement, courts, and corrections. 
  3.1      [EFFECTIVE DATE.] This section is effective for sales made 
  3.2   after December 31, 2005.