1.1 	A bill for an act
1.2 	relating to taxation; individual income and gross receipts; providing for a tax return 
1.3 	checkoff; imposing a tax on certain lodging and pay television services; making 
1.4 	other conforming changes;proposing coding for new law in Minnesota Statutes, 
1.5 	chapter 295.
1.6 	BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

1.7 	Section 1. [295.90] LODGING AND PAY TELEVISION SERVICES GROSS 
1.8 	RECEIPTS TAX.
1.9 		Subdivision 1.Definitions. (a) For purposes of this section, the following terms have 
1.10 	the meanings given.
1.11 	(b) "Commissioner" means the commissioner of revenue.
1.12 	(c) "Gross receipts" means the total amount received in money or by barter or exchange 
1.13 	for the following sales at retail as measured by the sales price:
1.14 	(1) lodging services; and
1.15 	(2) pay television services.
1.16 	Gross receipts does not include any taxes imposed directly on the customer that are separately 
1.17 	stated on the invoice, bill of sale, or similar document given to the purchaser. Gross receipts 
1.18 	do not include discounts, including cash, terms, or coupons, that are not reimbursed by a 
1.19 	third party and that are allowed by the seller and taken by a purchaser on a sale.
1.20 	(d) "Lodging services" has the meaning given in section 297A.61, subdivision 3, 
1.21 	paragraph (g), clause (2).
1.22 	(e) "Lodging facility" means a facility in Minnesota that furnishes lodging services.
2.1 	(f) "Pay television service" has the meaning given in section 297A.61, subdivision 25.
2.2 	(g) "Retail sale" has the meaning given in section 297A.61, subdivision 4.
2.3 	(h) "Sales price" has the meaning given in section 297A.61, subdivision 7, paragraph 
2.4 	(b), clause (3).
2.5 		Subd. 2.Gross receipts tax imposed; lodging services. (a) A tax is imposed on any 
2.6 	lodging facility that sells lodging services to customers in Minnesota.
2.7 	(b) The tax imposed under this subdivision equals ... percent on the gross receipts from 
2.8 	retail sales in Minnesota of lodging services.
2.9 	(c) A lodging facility may, but is not required to, collect the tax imposed by this 
2.10 	subdivision from the purchaser as long as the tax is separately stated on the receipt, invoice, 
2.11 	bill of sale, or similar document given to the purchaser.
2.12 	(d) If the service subject to the tax imposed under this subdivision is included in a bundled 
2.13 	transaction, the entire sales price of the bundled transaction is subject to the tax imposed 
2.14 	under this subdivision.
2.15 	(e) The tax imposed under this subdivision is in addition to any other tax imposed on 
2.16 	the sale or use of lodging services.
2.17 		Subd. 3.Gross receipts tax imposed; pay television services. (a) A tax is imposed on 
2.18 	any lodging facility that sells pay television services to customers if pay television services 
2.19 	are not included in the sales price of lodging services.
2.20 	(b) The tax imposed under this subdivision equals ... percent of gross receipts from retail 
2.21 	sales of pay television services.
2.22 	(c) A lodging facility may, but is not required to, collect the tax imposed by this 
2.23 	subdivision from the purchaser as long as the tax is separately stated on the receipt, invoice, 
2.24 	bill of sale, or similar document given to the purchaser.
2.25 	(d) If the service subject to the tax imposed under this subdivision is included in a bundled 
2.26 	transaction, the entire sales price of the bundled transaction is subject to the tax imposed 
2.27 	under this subdivision.
2.28 		Subd. 4.Taxes paid to another state or any subdivision thereof; credit. A lodging 
2.29 	facility that has paid taxes to another state or any subdivision of that state measured by gross 
2.30 	receipts and is subject to tax under this section on the same gross receipts is entitled to a 
2.31 	credit for the tax legally due and paid to another state or any subdivision of that state to the 
2.32 	extent of the lesser of (1) the tax actually paid to the other state or any subdivision of that 
3.1 	state, or (2) the amount of tax imposed by Minnesota on the gross receipts subject to tax in 
3.2 	the other taxing state or any subdivision thereof.
3.3 		Subd. 5.Administration. Unless specifically provided otherwise, the audit, assessment, 
3.4 	refund, penalty, interest, enforcement, collection remedies, appeal, and administrative 
3.5 	provisions of chapters 270C and 289A that are applicable to taxes imposed under chapter 
3.6 	297A apply to the tax imposed under this section.
3.7 		Subd. 6.Returns; payment of tax. (a) A lodging facility must report the tax on a return 
3.8 	prescribed by the commissioner and must remit the tax in a form and manner prescribed by 
3.9 	the commissioner. The return and the tax must be filed and paid using the filing cycle and 
3.10 	due dates provided for taxes imposed under section 289A.20, subdivision 4, and chapter 
3.11 	297A.
3.12 	(b) Interest must be paid on an overpayment refunded or credited to the taxpayer from 
3.13 	the date of payment of the tax until the date the refund is paid or credited. For purposes of 
3.14 	this subdivision, the date of payment is the due date of the return or the date of actual 
3.15 	payment of the tax, whichever is later.
3.16 		Subd. 7.Deposit of revenues. The commissioner must deposit the revenues, including 
3.17 	penalties and interest, derived from the tax imposed by this section to the Minnesota victims 
3.18 	of crime account.
3.19 		Subd. 8.Personal debt. The tax imposed by this section, and interest and penalties 
3.20 	imposed with respect to the tax, are a personal debt of the person required to file a return 
3.21 	from the time that the liability for the tax arises, irrespective of when the time for payment 
3.22 	of the liability occurs. In the case of a fiduciary, the debt is that fiduciary's debt only in that 
3.23 	person's official or fiduciary capacity. If a fiduciary voluntarily distributes assets without 
3.24 	reserving sufficient assets to pay the tax, interest, and penalties, the fiduciary is personally 
3.25 	liable for any deficiency.

3.26 	EFFECTIVE DATE. This section is effective for gross receipts received after June 30, 
3.27 	2026.