HF 1714

as introduced - 92nd Legislature (2021 - 2022) Posted on 03/01/2021 04:06pm

A bill for an act
relating to taxation; sales and use; imposing a fee on luxury motor boats;
establishing a water preservation and restoration account; proposing coding for
new law in Minnesota Statutes, chapter 297A.

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

Section 1.

new text begin [297A.655] LUXURY MOTORBOATS; ADDITIONAL FEE.
new text end

new text begin Subdivision 1. new text end

new text begin Tax imposed. new text end

new text begin The sale of luxury motorboats is subject to the tax imposed
under section 297A.62, as well as the fee imposed under subdivision 2 of this section.
new text end

new text begin Subd. 2. new text end

new text begin Fee imposed. new text end

new text begin (a) A fee equal to four percent of the luxury increment of any
motorboat defined under section 86B.005, subdivision 9, is imposed on the sale of luxury
motorboats in this state.
new text end

new text begin (b) For the purpose of this section, "luxury increment" is the greater of zero or the amount
calculated as follows:
new text end

new text begin (1) the purchase price of the motorboat; less
new text end

new text begin (2) 200 percent of the most recent average purchase price of all motorboats subject to
licensure under chapter 86B.
new text end

new text begin (c) For the purpose of this section, "luxury motorboat" means any motorboat, as defined
in section 86B.005, subdivision 9, that is subject to the luxury increment.
new text end

new text begin Subd. 3. new text end

new text begin Data collection. new text end

new text begin After July 1 but before August 31 annually, the commissioner
must revise the average purchase prices used in the calculation of the luxury increment
under subdivision 2. The commissioner must use sales data from the previous fiscal year.
Each revised average purchase price is effective for sales and purchases made on or after
October 1 in that year.
new text end

new text begin Subd. 4. new text end

new text begin Administration. new text end

new text begin A retailer shall report and pay the fee imposed in subdivision
2 to the commissioner with the taxes imposed in this chapter. The tax imposed in subdivision
2 is subject to the same interest, penalty, and other provisions provided for sales and use
taxes under this chapter and chapter 289A. The audit, assessment, appeal, collection,
enforcement, and administrative provisions of this chapter and chapters 270C and 289A,
that apply to sales and use taxes, apply to the fee.
new text end

new text begin Subd. 5. new text end

new text begin Deposit of revenue. new text end

new text begin The revenue derived from the fee imposed under
subdivision 2 must be deposited in the water preservation and restoration account in the
natural resources fund as established by subdivision 6.
new text end

new text begin Subd. 6. new text end

new text begin Account created. new text end

new text begin A water preservation and restoration account is hereby
established in the natural resources fund. Money deposited in this account must be used for
water preservation and restoration efforts statewide.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective July 1, 2021, for sales and purchases on
or after October 1, 2021.
new text end