1.1                          A bill for an act 
  1.2             relating to taxes; eliminating June accelerated 
  1.3             payments of sales, liquor, and cigarette and tobacco 
  1.4             taxes; amending Minnesota Statutes 1998, section 
  1.5             297F.09, subdivisions 1 and 2; Minnesota Statutes 1999 
  1.6             Supplement, sections 289A.18, subdivision 4; and 
  1.7             289A.20, subdivision 4; repealing Minnesota Statutes 
  1.8             1998, sections 289A.60, subdivision 15; 297F.09, 
  1.9             subdivision 6; and 297G.09, subdivision 5. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 1999 Supplement, section 
  1.12  289A.18, subdivision 4, is amended to read: 
  1.13     Subd. 4.  [SALES AND USE TAX RETURNS.] (a) Sales and use 
  1.14  tax returns must be filed on or before the 20th day of the month 
  1.15  following the close of the preceding reporting period, except 
  1.16  that annual use tax returns provided for under section 289A.11, 
  1.17  subdivision 1, must be filed by April 15 following the close of 
  1.18  the calendar year, in the case of individuals.  Annual use tax 
  1.19  returns of businesses, including sole proprietorships, and 
  1.20  annual sales tax returns must be filed by February 5 following 
  1.21  the close of the calendar year.  
  1.22     (b) Except for the return for the June reporting period, 
  1.23  which is due on the following August 25, Returns filed by 
  1.24  retailers required to remit liabilities by means of funds 
  1.25  transfer under section 289A.20, subdivision 4, 
  1.26  paragraph (d) (b), are due on or before the 25th day of the 
  1.27  month following the close of the preceding reporting period.  
  2.1      (c) If a retailer has an average sales and use tax 
  2.2   liability, including local sales and use taxes administered by 
  2.3   the commissioner, equal to or less than $500 per month in any 
  2.4   quarter of a calendar year, and has substantially complied with 
  2.5   the tax laws during the preceding four calendar quarters, the 
  2.6   retailer may request authorization to file and pay the taxes 
  2.7   quarterly in subsequent calendar quarters.  The authorization 
  2.8   remains in effect during the period in which the retailer's 
  2.9   quarterly returns reflect sales and use tax liabilities of less 
  2.10  than $1,500 and there is continued compliance with state tax 
  2.11  laws. 
  2.12     (d) If a retailer has an average sales and use tax 
  2.13  liability, including local sales and use taxes administered by 
  2.14  the commissioner, equal to or less than $100 per month during a 
  2.15  calendar year, and has substantially complied with the tax laws 
  2.16  during that period, the retailer may request authorization to 
  2.17  file and pay the taxes annually in subsequent years.  The 
  2.18  authorization remains in effect during the period in which the 
  2.19  retailer's annual returns reflect sales and use tax liabilities 
  2.20  of less than $1,200 and there is continued compliance with state 
  2.21  tax laws. 
  2.22     (e) The commissioner may also grant quarterly or annual 
  2.23  filing and payment authorizations to retailers if the 
  2.24  commissioner concludes that the retailers' future tax 
  2.25  liabilities will be less than the monthly totals identified in 
  2.26  paragraphs (c) and (d).  An authorization granted under this 
  2.27  paragraph is subject to the same conditions as an authorization 
  2.28  granted under paragraphs (c) and (d). 
  2.29     (f) A taxpayer who is a materials supplier may report gross 
  2.30  receipts either on: 
  2.31     (1) the cash basis as the consideration is received; or 
  2.32     (2) the accrual basis as sales are made.  
  2.33  As used in this paragraph, "materials supplier" means a person 
  2.34  who provides materials for the improvement of real property; who 
  2.35  is primarily engaged in the sale of lumber and building 
  2.36  materials-related products to owners, contractors, 
  3.1   subcontractors, repairers, or consumers; who is authorized to 
  3.2   file a mechanics lien upon real property and improvements under 
  3.3   chapter 514; and who files with the commissioner an election to 
  3.4   file sales and use tax returns on the basis of this paragraph. 
  3.5      Sec. 2.  Minnesota Statutes 1999 Supplement, section 
  3.6   289A.20, subdivision 4, is amended to read: 
  3.7      Subd. 4.  [SALES AND USE TAX.] (a) The taxes imposed by 
  3.8   chapter 297A are due and payable to the commissioner monthly on 
  3.9   or before the 20th day of the month following the month in which 
  3.10  the taxable event occurred, or following another reporting 
  3.11  period as the commissioner prescribes or as allowed under 
  3.12  section 289A.18, subdivision 4, paragraph (f), except that use 
  3.13  taxes due on an annual use tax return as provided under section 
  3.14  289A.11, subdivision 1, are payable by April 15 following the 
  3.15  close of the calendar year. 
  3.16     (b) A vendor having a liability of $120,000 or more during 
  3.17  a fiscal year ending June 30 must remit the June liability for 
  3.18  the next year in the following manner: 
  3.19     (1) Two business days before June 30 of the year, the 
  3.20  vendor must remit 75 percent of the estimated June liability to 
  3.21  the commissioner.  
  3.22     (2) On or before August 14 of the year, the vendor must pay 
  3.23  any additional amount of tax not remitted in June. 
  3.24     (c) A vendor having a liability of $120,000 or more during 
  3.25  a fiscal year ending June 30 must remit all liabilities in the 
  3.26  subsequent calendar year by means of a funds transfer as defined 
  3.27  in section 336.4A-104, paragraph (a).  The funds transfer 
  3.28  payment date, as defined in section 336.4A-401, must be on or 
  3.29  before the 14th day of the month following the month in which 
  3.30  the taxable event occurred, or on or before the 14th day of the 
  3.31  month following the month in which the sale is reported under 
  3.32  section 289A.18, subdivision 4, except for 75 percent of the 
  3.33  estimated June liability, which is due two business days before 
  3.34  June 30.  The remaining amount of the June liability is due on 
  3.35  August 14.  If the date the tax is due is not a funds transfer 
  3.36  business day, as defined in section 336.4A-105, paragraph (a), 
  4.1   clause (4), the payment date must be on or before the funds 
  4.2   transfer business day next following the date the tax is due. 
  4.3      (d) (c) If the vendor required to remit by electronic funds 
  4.4   transfer as provided in paragraph (c) (b) is unable due to 
  4.5   reasonable cause to determine the actual sales and use tax due 
  4.6   on or before the due date for payment, the vendor may remit an 
  4.7   estimate of the tax owed using one of the following options: 
  4.8      (1) 100 percent of the tax reported on the previous month's 
  4.9   sales and use tax return; 
  4.10     (2) 100 percent of the tax reported on the sales and use 
  4.11  tax return for the same month in the previous calendar year; or 
  4.12     (3) 95 percent of the actual tax due. 
  4.13     Any additional amount of tax that is not remitted on or 
  4.14  before the due date for payment, must be remitted with the 
  4.15  return.  If a vendor fails to remit the actual liability or does 
  4.16  not remit using one of the estimate options by the due date for 
  4.17  payment, the vendor must remit actual liability as provided in 
  4.18  paragraph (c) (b) in all subsequent periods.  This paragraph 
  4.19  does not apply to the June sales and use tax liability. 
  4.20     Sec. 3.  Minnesota Statutes 1998, section 297F.09, 
  4.21  subdivision 1, is amended to read: 
  4.22     Subdivision 1.  [MONTHLY RETURN; CIGARETTE DISTRIBUTOR.] On 
  4.23  or before the 18th day of each calendar month, a distributor 
  4.24  with a place of business in this state shall file a return with 
  4.25  the commissioner showing the quantity of cigarettes manufactured 
  4.26  or brought in from outside the state or purchased during the 
  4.27  preceding calendar month and the quantity of cigarettes sold or 
  4.28  otherwise disposed of in this state and outside this state 
  4.29  during that month.  A licensed distributor outside this state 
  4.30  shall in like manner file a return showing the quantity of 
  4.31  cigarettes shipped or transported into this state during the 
  4.32  preceding calendar month.  Returns must be made in the form and 
  4.33  manner prescribed by the commissioner and must contain any other 
  4.34  information required by the commissioner.  The return must be 
  4.35  accompanied by a remittance for the full unpaid tax liability 
  4.36  shown by it.  The return for the May liability and 75 percent of 
  5.1   the estimated June liability is due on the date payment of the 
  5.2   tax is due. 
  5.3      Sec. 4.  Minnesota Statutes 1998, section 297F.09, 
  5.4   subdivision 2, is amended to read: 
  5.5      Subd. 2.  [MONTHLY RETURN; TOBACCO PRODUCTS DISTRIBUTOR.] 
  5.6   On or before the 18th day of each calendar month, a distributor 
  5.7   with a place of business in this state shall file a return with 
  5.8   the commissioner showing the quantity and wholesale sales price 
  5.9   of each tobacco product: 
  5.10     (1) brought, or caused to be brought, into this state for 
  5.11  sale; and 
  5.12     (2) made, manufactured, or fabricated in this state for 
  5.13  sale in this state, during the preceding calendar month.  
  5.14  Every licensed distributor outside this state shall in like 
  5.15  manner file a return showing the quantity and wholesale sales 
  5.16  price of each tobacco product shipped or transported to 
  5.17  retailers in this state to be sold by those retailers, during 
  5.18  the preceding calendar month.  Returns must be made in the form 
  5.19  and manner prescribed by the commissioner and must contain any 
  5.20  other information required by the commissioner.  The return must 
  5.21  be accompanied by a remittance for the full tax liability shown, 
  5.22  less 1.5 percent of the liability as compensation to reimburse 
  5.23  the distributor for expenses incurred in the administration of 
  5.24  this chapter.  The return for the May liability and 75 percent 
  5.25  of the estimated June liability is due on the date payment of 
  5.26  the tax is due. 
  5.27     Sec. 5.  [REPEALER.] 
  5.28     Minnesota Statutes 1998, sections 289A.60, subdivision 15; 
  5.29  297F.09, subdivision 6; and 297G.09, subdivision 5, are repealed.
  5.30     Sec. 6.  [EFFECTIVE DATE.] 
  5.31     Sections 1 to 5 are effective beginning with returns filed 
  5.32  after January 1, 2001.