HF 1499

1st Engrossment - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to gambling; providing for the payment of 
  1.3             certain taxes; regulating gambling equipment sales; 
  1.4             modifying the combined receipts tax schedule; amending 
  1.5             Minnesota Statutes 1996, sections 289A.20, subdivision 
  1.6             4; 297E.02, subdivisions 3 and 6; and 349.191, 
  1.7             subdivision 1b. 
  1.8   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.9      Section 1.  Minnesota Statutes 1996, section 289A.20, 
  1.10  subdivision 4, is amended to read: 
  1.11     Subd. 4.  [SALES AND USE TAX.] (a) The taxes imposed by 
  1.12  chapter 297A are due and payable to the commissioner monthly on 
  1.13  or before the 20th day of the month following the month in which 
  1.14  the taxable event occurred or following another reporting period 
  1.15  as the commissioner prescribes, except that use taxes due on an 
  1.16  annual use tax return as provided under section 289A.11, 
  1.17  subdivision 1, are payable by April 15 following the close of 
  1.18  the calendar year. 
  1.19     (b) A vendor having a liability of $120,000 or more during 
  1.20  a fiscal year ending June 30 must remit the June liability for 
  1.21  the next year in the following manner: 
  1.22     (1) Two business days before June 30 of the year, the 
  1.23  vendor must remit 75 percent of the estimated June liability to 
  1.24  the commissioner.  
  1.25     (2) On or before August 14 of the year, the vendor must pay 
  1.26  any additional amount of tax not remitted in June. 
  2.1      (c) A vendor having a liability of $120,000 or more during 
  2.2   a fiscal year ending June 30 must remit all liabilities in the 
  2.3   subsequent calendar year by means of a funds transfer as defined 
  2.4   in section 336.4A-104, paragraph (a).  The funds transfer 
  2.5   payment date, as defined in section 336.4A-401, must be on or 
  2.6   before the 14th day of the month following the month in which 
  2.7   the taxable event occurred, except for 75 percent of the 
  2.8   estimated June liability, which is due two business days before 
  2.9   June 30.  The remaining amount of the June liability is due on 
  2.10  August 14.  If the date the tax is due is not a funds transfer 
  2.11  business day, as defined in section 336.4A-105, paragraph (a), 
  2.12  clause (4), the payment date must be on or before the funds 
  2.13  transfer business day next following the date the tax is due. 
  2.14     (d) If the vendor required to remit by electronic funds 
  2.15  transfer as provided in paragraph (c) is unable due to 
  2.16  reasonable cause to determine the actual sales and use tax due 
  2.17  on or before the due date for payment, the vendor may remit an 
  2.18  estimate of the tax owed using one of the following options: 
  2.19     (1) 100 percent of the tax reported on the previous month's 
  2.20  sales and use tax return; 
  2.21     (2) 100 percent of the tax reported on the sales and use 
  2.22  tax return for the same month in the previous calendar year; or 
  2.23     (3) 95 percent of the actual tax due. 
  2.24     Any additional amount of tax that is not remitted on or 
  2.25  before the due date for payment, must be remitted with the 
  2.26  return.  If a vendor fails to remit the actual liability or does 
  2.27  not remit using one of the estimate options by the due date for 
  2.28  payment, the vendor must remit actual liability as provided in 
  2.29  paragraph (c) in all subsequent periods.  This paragraph does 
  2.30  not apply to the June sales and use tax liability. 
  2.31     (e) Notwithstanding paragraph (a), the taxes imposed by 
  2.32  chapter 297A on sales of gambling equipment as defined in 
  2.33  section 349.12, subdivision 18, are due and payable to the 
  2.34  commissioner monthly on or before the fifth day of the second 
  2.35  month following the month in which the taxable event occurred. 
  2.36     Sec. 2.  Minnesota Statutes 1996, section 297E.02, 
  3.1   subdivision 3, is amended to read: 
  3.2      Subd. 3.  [COLLECTION; DISPOSITION.] Taxes imposed by this 
  3.3   section are due and payable to the commissioner when the 
  3.4   gambling tax return is required to be filed.  Returns covering 
  3.5   the taxes imposed under this section must be filed with the 
  3.6   commissioner on or before the 20th fifth day of the second month 
  3.7   following the close of the previous calendar month.  The 
  3.8   commissioner may require that the returns be filed via magnetic 
  3.9   media or electronic data transfer.  The proceeds, along with the 
  3.10  revenue received from all license fees and other fees under 
  3.11  sections 349.11 to 349.191, 349.211, and 349.213, must be paid 
  3.12  to the state treasurer for deposit in the general fund. 
  3.13     Sec. 3.  Minnesota Statutes 1996, section 297E.02, 
  3.14  subdivision 6, is amended to read: 
  3.15     Subd. 6.  [COMBINED RECEIPTS TAX.] In addition to the taxes 
  3.16  imposed under subdivisions 1 and 4, a tax is imposed on the 
  3.17  combined receipts of the organization.  As used in this section, 
  3.18  "combined receipts" is the sum of the organization's gross 
  3.19  receipts from lawful gambling less gross receipts directly 
  3.20  derived from the conduct of bingo, raffles, and paddlewheels, as 
  3.21  defined in section 297E.01, subdivision 8, for the fiscal year.  
  3.22  The combined receipts of an organization are subject to a tax 
  3.23  computed according to the following schedule: 
  3.24     If the combined receipts for the          The tax is:
  3.25     fiscal year are:
  3.26     Not over $500,000                   zero
  3.27     Over $500,000, but not over
  3.28     $700,000                            two percent of the amount
  3.29                                         over $500,000, but not
  3.30                                         over $700,000
  3.31     Over $700,000, but not over
  3.32     $900,000                            $4,000 plus four percent
  3.33                                         of the amount over
  3.34                                         $700,000, but not over
  3.35                                         $900,000
  3.36     Over $900,000                       $12,000 plus six percent
  4.1                                          of the amount over
  4.2                                          $900,000
  4.3      Not over $750,000                   zero 
  4.4      Over $750,000, but not over 
  4.5      $1,000,000                          one percent of the amount 
  4.6                                          over $750,000, but not 
  4.7                                          over $1,000,000 
  4.8      Over $1,000,000, but not over
  4.9      $1,250,000                          $2,500 plus two percent
  4.10                                         of the amount over
  4.11                                         $1,000,000, but not over
  4.12                                         $1,250,000
  4.13     Over $1,250,000                     $7,500 plus three percent
  4.14                                         of the amount over
  4.15                                         $1,250,000
  4.16     Sec. 4.  Minnesota Statutes 1996, section 349.191, 
  4.17  subdivision 1b, is amended to read: 
  4.18     Subd. 1b.  [CREDIT AND SALES TO DELINQUENT DISTRIBUTORS.] 
  4.19  (a) If a manufacturer does not receive payment in full from a 
  4.20  distributor within 30 35 days of the delivery of gambling 
  4.21  equipment, the manufacturer must notify the board in writing of 
  4.22  the delinquency. 
  4.23     (b) If a manufacturer who has notified the board under 
  4.24  paragraph (a) has not received payment in full from the 
  4.25  distributor within 60 days of the notification under paragraph 
  4.26  (a), the manufacturer must notify the board of the continuing 
  4.27  delinquency. 
  4.28     (c) On receipt of a notice under paragraph (a), the board 
  4.29  shall order all manufacturers that until further notice from the 
  4.30  board, they may sell gambling equipment to the delinquent 
  4.31  distributor only on a cash basis with no credit extended.  On 
  4.32  receipt of a notice under paragraph (b), the board shall order 
  4.33  all manufacturers not to sell any gambling equipment to the 
  4.34  delinquent distributor. 
  4.35     (d) No manufacturer may extend credit or sell gambling 
  4.36  equipment to a distributor in violation of an order under 
  5.1   paragraph (c) until the board has authorized such credit or sale.
  5.2      Sec. 5.  [EFFECTIVE DATE.] 
  5.3      Section 3 is effective July 1, 1997.