HF 2131

as introduced - 89th Legislature (2015 - 2016) Posted on 03/26/2015 01:42pm

A bill for an act
relating to taxation; sales and use; providing a vendor allowance; amending
Minnesota Statutes 2014, sections 289A.20, subdivision 4; 297A.77, subdivision
3; proposing coding for new law in Minnesota Statutes, chapter 297A.

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

Section 1.

Minnesota Statutes 2014, section 289A.20, subdivision 4, is amended to read:

Subd. 4.

Sales and use tax.

(a) The taxes imposed by chapter 297A are due and
payable to the commissioner monthly on or before the 20th day of the month following the
month in which the taxable event occurred, or following another reporting period as the
commissioner prescribes or as allowed under section 289A.18, subdivision 4, paragraph
(f) or (g), except that use taxes due on an annual use tax return as provided under section
289A.11, subdivision 1, are payable by April 15 following the close of the calendar year.

(b) A vendor having a liability of $250,000 or more during a fiscal year ending June
30 must remit the June new text begin net new text end liability for the next year in the following manner:

(1) Two business days before June 30 of the year, the vendor must remit 81.4 percent
of the estimated June new text begin net new text end liability to the commissioner.

(2) On or before August 20 of the year, the vendor must pay any additional amount
of tax not remitted in June.

(c) A vendor having a liability of:

(1) $10,000 or more, but less than $250,000 during a fiscal year ending June 30,
2013, and fiscal years thereafter, must remit by electronic means all new text begin net new text end liabilities on
returns due for periods beginning in all subsequent calendar years on or before the 20th
day of the month following the month in which the taxable event occurred, or on or before
the 20th day of the month following the month in which the sale is reported under section
289A.18, subdivision 4; or

(2) $250,000 or more, during a fiscal year ending June 30, 2013, and fiscal years
thereafter, must remit by electronic means all new text begin net new text end liabilities in the manner provided in
paragraph (a) on returns due for periods beginning in the subsequent calendar year, except
for 81.4 percent of the estimated June new text begin net new text end liability, which is due two business days before
June 30. The remaining amount of the June liability is due on August 20.

(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's
religious beliefs from paying electronically shall be allowed to remit the payment by mail.
The filer must notify the commissioner of revenue of the intent to pay by mail before
doing so on a form prescribed by the commissioner. No extra fee may be charged to a
person making payment by mail under this paragraph. The payment must be postmarked
at least two business days before the due date for making the payment in order to be
considered paid on a timely basis.

new text begin (e) For purposes of this subdivision, "net liability" means the liability minus the
amount of vendor allowance authorized under section 297A.816.
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, 2015.
new text end

Sec. 2.

Minnesota Statutes 2014, section 297A.77, subdivision 3, is amended to read:

Subd. 3.

Tax must be remitted.

The tax collected by a retailer under this section new text begin ,
except for the amount allowed to be retained by the seller under section 297A.816, new text end must
be remitted to the commissioner as provided in chapter 289A and this chapter.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after
June 30, 2015.
new text end

Sec. 3.

new text begin [297A.816] VENDOR ALLOWANCE.
new text end

new text begin Subdivision 1. new text end

new text begin Eligibility. new text end

new text begin A retailer or seller may retain a portion of sales
tax collected as a vendor allowance in compensation for the costs of collecting and
administering the tax under this chapter. This section applies only if the tax minus the
vendor allowance is both reported and remitted to the commissioner in a timely fashion
as required under chapter 289A.
new text end

new text begin Subd. 2. new text end

new text begin Tax not eligible for allowance. new text end

new text begin Use taxes paid by the seller on the seller's
own purchases are not included in calculating the vendor allowance under this section.
All other sales and use taxes collected by a seller are eligible for the vendor allowance
under this section.
new text end

new text begin Subd. 3. new text end

new text begin Calculation of allowance; minimum amounts. new text end

new text begin (a) The amount of the
vendor allowance is equal to a percentage of the eligible taxes collected in the reporting
period, as defined under section 289A.18, subdivision 4, at the rates provided under
paragraph (b). The vendor allowance per reporting period may not be less than the lesser
of $10 or the amount of eligible taxes collected during the reporting period.
new text end

new text begin (b) The vendor allowance authorized under this section must be calculated using the
following thresholds and rates:
new text end

new text begin (1) for vendors with sales less than $60,000 in a fiscal year ending June 30 of a
calendar year, two percent;
new text end

new text begin (2) for vendors with sales between $60,000 and $600,000 in a fiscal year ending
June 30 of a calendar year, one percent; and
new text end

new text begin (3) for vendors with sales greater than $600,000 in a fiscal year ending June 30
of a calendar year, 0.75 percent.
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, 2015.
new text end