HF 69

as introduced - 89th Legislature (2015 - 2016) Posted on 01/29/2015 04:26pm

A bill for an act
relating to taxation; sales and use; providing for a vendor allowance; amending
Minnesota Statutes 2014, section 289A.31, subdivision 7, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2014, section 289A.31, subdivision 7, is amended to read:

Subd. 7.

Sales and use tax.

(a) The sales and use tax required to be collected by the
retailer under chapter 297A constitutes a debt owed by the retailer to Minnesota, and the
sums collected must be held as a special fund in trust for the state of Minnesota.

A retailer who does not maintain a place of business within this state as defined by
section 297A.66, subdivision 1, shall not be indebted to Minnesota for amounts of tax that
it was required to collect but did not collect unless the retailer knew or had been advised
by the commissioner of its obligation to collect the tax.

(b) The use tax required to be paid by a purchaser is a debt owed by the purchaser
to Minnesota.

(c) The tax imposed by chapter 297A, and interest and penalties, is a personal debt
of the individual required to file a return from the time the liability arises, irrespective
of when the time for payment of that liability occurs. The debt is, in the case of the
executor or administrator of the estate of a decedent and in the case of a fiduciary, that
of the individual in an official or fiduciary capacity unless the individual has voluntarily
distributed the assets held in that capacity without reserving sufficient assets to pay the tax,
interest, and penalties, in which case the individual is personally liable for the deficiency.

(d) Liability for payment of sales and use taxes includes any responsible person or
entity described in the personal liability provisions of section 270C.56.

(e) Any amounts collected, new text begin except as provided in subdivision 7a, new text end even if erroneously
or illegally collected, from a purchaser under a representation that they are taxes imposed
under chapter 297A are state funds from the time of collection deleted text begin and deleted text end new text begin . Any amounts
collected, including amounts deducted under subdivision 7a, new text end must be reported on a return
filed with the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and use taxes collected after
December 31, 2015, and remitted after January 30, 2016.
new text end

Sec. 2.

Minnesota Statutes 2014, section 289A.31, is amended by adding a subdivision
to read:

new text begin Subd. 7a. new text end

new text begin Deduction for vendor collection allowance. new text end

new text begin A retailer, if remitting the
sales or use tax imposed under chapter 297A in a timely fashion, is entitled to deduct and
retain from the amount of taxes otherwise required to be remitted to the commissioner
a vendor allowance equal to the greater of $5 or 1.0 percent of the retailer's liability for
the current remittance period. The vendor deduction may not reduce the tax owed in the
remittance period to less than zero. The vendor allowance does not apply to (1) local sales
and use tax amounts collected by the retailer, and (2) use tax owed by the retailer on its
own purchases. The vendor deduction under this subdivision must be reported with the
remaining sales and use taxes on a return filed with the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and use taxes collected after
December 31, 2015, and remitted after January 30, 2016.
new text end