HF 2144

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

A bill for an act
relating to sales taxes; allowing a vendor allowance;
amending Minnesota Statutes 2004, section 289A.31,
subdivision 7, by adding a subdivision.

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

Section 1.

Minnesota Statutes 2004, section 289A.31,
subdivision 7, is amended to read:

Subd. 7.

Sales and use tax.

(a) The sales and use tax
required to be collected by the retailer under chapter 297A
constitutes a debt owed by the retailer to Minnesota, and the
sums collected must be held as a special fund in trust for the
state of Minnesota.

A retailer who does not maintain a place of business within
this state as defined by section 297A.66, subdivision 1, shall
not be indebted to Minnesota for amounts of tax that it was
required to collect but did not collect unless the retailer knew
or had been advised by the commissioner of its obligation to
collect the tax.

(b) The use tax required to be paid by a purchaser is a
debt owed by the purchaser to Minnesota.

(c) The tax imposed by chapter 297A, and interest and
penalties, is a personal debt of the individual required to file
a return from the time the liability arises, irrespective of
when the time for payment of that liability occurs. The debt
is, in the case of the executor or administrator of the estate
of a decedent and in the case of a fiduciary, that of the
individual in an official or fiduciary capacity unless the
individual has voluntarily distributed the assets held in that
capacity without reserving sufficient assets to pay the tax,
interest, and penalties, in which case the individual is
personally liable for the deficiency.

(d) Liability for payment of sales and use taxes includes
any responsible person or entity described in the personal
liability provisions of section 270.101.

(e) Any amounts collected, new text begin except as provided in section 2,
new text end even if erroneously or illegally collected, from a purchaser
under a representation that they are taxes imposed under chapter
297A are state funds from the time of collection and must be
reported on a return filed with the commissioner.

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and
use tax collected after December 31, 2005, and remitted after
January 1, 2006.
new text end

Sec. 2.

Minnesota Statutes 2004, section 289A.31, is
amended by adding a subdivision to read:

new text begin Subd. 7a. new text end

new text begin Deduction for retailer collection allowance. new text end

new text begin A
retailer, if remitting the sales tax imposed under chapter 297A
in a timely fashion, is entitled to deduct and retain from the
amount of taxes otherwise required to be remitted a retailer
collection allowance equal to 0.5 percent of the taxpayer's
liability for the current remittance period, not to exceed an
amount of $500 per month for the remittance period. The vendor
collection allowance does not apply to use tax owed by the
retailer on its own purchases.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for sales and
use tax collected after December 31, 2005, and remitted after
January 1, 2006.
new text end