HF 3754

as introduced - 92nd Legislature (2021 - 2022) Posted on 02/24/2022 02:06pm

A bill for an act
relating to taxation; sales and use; modifying provisions related to the privilege
of admission and the exemption for suite licenses; amending Minnesota Statutes
2020, sections 297A.67, subdivision 35; 297A.68, by adding a subdivision;
297A.79.

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

Section 1.

Minnesota Statutes 2020, section 297A.67, subdivision 35, is amended to read:

Subd. 35.

Suite licenses.

The sale of the privilege of admission under section 297A.61,
subdivision 3, paragraph (g), clause (1), to a place of amusement or athletic event does not
include consideration paid for a license to use a private suite, private skybox, or private box
seat, and the sale of the license is exempt provided that: (1) the lessee may use the private
suite, private skybox, or private box seat by mutual arrangement with the lessor on days
when there is no amusement or athletic event; and (2) the sales price for the privilege of
admission is separately stated and is equal to or greater than the highest priced general
admission ticket for the closest seat not in the private suite, private skybox, or private box
seat. new text begin The sale of food and beverages for consumption in a private suite, private skybox, or
private box seat must be taxable to the extent provided under this chapter, but these taxable
sales do not invalidate the exemption in this subdivision.
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, 2021.
new text end

Sec. 2.

Minnesota Statutes 2020, section 297A.68, is amended by adding a subdivision to
read:

new text begin Subd. 46. new text end

new text begin Certain amenities included with privilege of admission. new text end

new text begin Amenities included
in the sales price of the privilege of admission under section 297A.61, subdivision 3,
paragraph (m), are exempt when purchased by a taxpayer selling the privilege of admission.
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, 2021.
new text end

Sec. 3.

Minnesota Statutes 2020, section 297A.79, is amended to read:

297A.79 REPORTING OF GROSS RECEIPTS.

At the option of the taxpayer, gross receipts from sales may be reported on the cash basis
as the consideration is received or on the accrual basis as sales are made. new text begin For taxpayers
reporting on the accrual basis, in the case of receipts from the sale of the privilege of
admission to places of amusement and athletic events, the sale is made and accrual occurs
at the time the event occurs.
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, 2021.
new text end