HF 1826

as introduced - 84th Legislature (2005 - 2006) Posted on 12/15/2009 12:00am

A bill for an act
relating to local sales taxes; providing a de minimus
exemption for certain goods; amending Minnesota
Statutes 2004, section 297A.99, by adding a
subdivision.

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

Section 1.

Minnesota Statutes 2004, section 297A.99, is
amended by adding a subdivision to read:

new text begin Subd. 6a. new text end

new text begin De minimis exemption. new text end

new text begin A purchase subject to
use tax under subdivision 6 is exempt if (1) the purchase is
made by an individual for personal use, and (2) the total sales
price of the taxable good or service purchased does not exceed
$1,000. For purposes of this subdivision, "personal use"
includes purchases for gifts. If an individual purchases a good
or service subject to use tax that has a sales price of more
than $1,000, the individual must pay the use tax on the entire
amount. This exemption does not apply to purchases made from
retailers who are required to collect the local sales tax for
the political subdivision.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for purchases
made after July 1, 2005, and applies to all local sales taxes
that were authorized before, on, or after July 1, 2005.
new text end