HF 3764

as introduced - 93rd Legislature (2023 - 2024) Posted on 04/04/2024 09:31pm

A bill for an act
relating to taxation; sales and use; providing a vendor allowance; amending
Minnesota Statutes 2022, 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 2022, 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,
except a vendor of construction materials as defined in paragraph (e), 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 calendar year 2020 and 2021, the vendor must
remit 87.5 percent of the estimated June new text begin net new text end liability to the commissioner. Two business
days before June 30 of calendar year 2022 and thereafter, the vendor must remit 84.5 percent,
or a reduced percentage as certified by the commissioner under section 16A.152, subdivision
2, paragraph (a), clause (6), of the estimated June 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 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 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 that a vendor subject to the remittance requirements of
paragraph (b) must remit the percentage of the estimated June new text begin net new text end liability, as provided in
paragraph (b), clause (1), 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.

(e) For the purposes of paragraph (b), "vendor of construction materials" means a retailer
that sells any of the following construction materials, if 50 percent or more of the retailer's
sales revenue for the fiscal year ending June 30 is from the sale of those materials:

(1) lumber, veneer, plywood, wood siding, wood roofing;

(2) millwork, including wood trim, wood doors, wood windows, wood flooring; or

(3) concrete, cement, and masonry.

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

deleted text begin (f) deleted text end new text begin (g) new text end Paragraph (b) expires after the percentage of estimated payment is reduced to
zero in accordance with section 16A.152, subdivision 2, paragraph (a), clause (6).

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and purchases made after June
30, 2024.
new text end

Sec. 2.

Minnesota Statutes 2022, 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 a retailer 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, 2024.
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 manner 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 tax liability less than $60,000 in the fiscal year ending June
30, two percent;
new text end

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

new text begin (3) for vendors with sales tax liability greater than $600,000 in the fiscal year ending
June 30, 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, 2024.
new text end