HF 2309

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

A bill for an act
relating to taxation; providing for a gross receipts
tax on retail sales of consumer goods in excess of
$20,000,000 at an individual location; establishing
thresholds for compensation and percentage of
full-time employees that cause the establishment to be
subject to the gross receipts tax; amending Minnesota
Statutes 2004, section 289A.01; proposing coding for
new law in Minnesota Statutes, chapter 295.

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

Section 1.

Minnesota Statutes 2004, section 289A.01, is
amended to read:

289A.01 APPLICATION OF CHAPTER.

This chapter applies to laws administered by the
commissioner under chapters 290, 290A, 291, and 297A, and
sections new text begin 295.61 to 295.65, new text end 298.01 new text begin , new text end and 298.015.

Sec. 2.

new text begin [295.61] RETAIL SALES GROSS RECEIPTS TAX;
DEFINITIONS.
new text end

new text begin Subdivision 1. new text end

new text begin Scope. new text end

new text begin As used in sections 295.61 to
295.65, the following definitions apply.
new text end

new text begin Subd. 2. new text end

new text begin Commissioner. new text end

new text begin "Commissioner" means the
commissioner of revenue.
new text end

new text begin Subd. 3. new text end

new text begin Consumer goods. new text end

new text begin "Consumer goods" has the
meaning provided in section 336.9-102, paragraph (a), clause
(23). The term does not include farm implements, gasoline,
electricity, or vehicles.
new text end

new text begin Subd. 4. new text end

new text begin Employee compensation package. new text end

new text begin "Employee
compensation package" means the annual total cost to an employer
for:
new text end

new text begin (1) an employee's wages or salary;
new text end

new text begin (2) an employee's leave time, including vacation and sick
leave;
new text end

new text begin (3) an employee's insurance, including employer
contributions for health, life, and dental insurance;
new text end

new text begin (4) an employee's retirement plan, employer contributions
required by the Federal Insurance Contributions Act, and
employer contributions to employee savings, flexible spending,
and similar plans; and
new text end

new text begin (5) similar employee benefits identified by the department
by rule.
new text end

new text begin Subd. 5. new text end

new text begin Farm implement. new text end

new text begin "Farm implement" means any
vehicle, machine, or attachment designed or adapted and used
exclusively for agricultural operations and only incidentally
operated or used on the highways.
new text end

new text begin Subd. 6. new text end

new text begin Gross receipts. new text end

new text begin "Gross receipts" means all
receipts from retail sales from each taxable establishment
within the state, whether in the form of money, credits, or
other valuable consideration, received as a result of engaging
in or conducting retail sales, without deduction on account of
the cost of the property sold, the cost of the materials used,
labor or service costs, interest paid, taxes, losses, or any
other expense. A taxable establishment may deduct the cost of
employer contributions for retirement benefits and health
insurance for employees from gross receipts. The term does not
include cash discounts allowed and taken on sales and sales
refunds, either in cash or by credit, uncollectible accounts
written off from time to time, or payments received in final
liquidation of accounts included in the gross receipts of any
previous return made by the taxable establishment.
new text end

new text begin Subd. 7. new text end

new text begin Retail sale. new text end

new text begin "Retail sale" means any transfer
of consumer goods for consideration for any purpose other than
for resale, sublease, subrent, or use in a manufacturing process.
new text end

new text begin Subd. 8. new text end

new text begin Taxable establishment. new text end

new text begin "Taxable establishment"
means:
new text end

new text begin (1) a premises in this state in which retail sales of
consumer goods are offered to the general public; and
new text end

new text begin (2) the retail sales are conducted by an employer:
new text end

new text begin (i) that provides full-time, nonmanagement or
nonprofessional, entry-level employees with an employee
compensation package that is equivalent to less than $22,000 a
year; or
new text end

new text begin (ii) that has more than 25 percent, when annualized, of its
employees working less than 40 hours a week.
new text end

new text begin Subd. 9. new text end

new text begin Vehicle. new text end

new text begin "Vehicle" means a device in, upon, or
by which any person or property may be transported or drawn that
is required to be registered or that is subject to a tax or fee
imposed under chapter 84, 86B, or 168.
new text end

Sec. 3.

new text begin [295.62] RETAIL SALES GROSS RECEIPTS TAX.
new text end

new text begin (a) A retail sales gross receipts tax is imposed on all
retail sales of consumer goods from a single taxable
establishment that are in excess of $20,000,000 in a calendar
year.
new text end

new text begin (b) The rate of tax on gross receipts in excess of
$20,000,000 is as follows:
new text end

new text begin (1) on gross receipts of $20,000,001 to $30,000,000, one
percent;
new text end

new text begin (2) on gross receipts of $30,000,001 to $40,000,000, 1.5
percent; and
new text end

new text begin (3) on gross receipts in excess of $40,000,000, two percent.
new text end

Sec. 4.

new text begin [295.63] RETURNS; PAYMENT; AUTHORITY OF
DEPARTMENT.
new text end

new text begin Subdivision 1. new text end

new text begin Return; payment of tax; audit. new text end

new text begin On or
before January 31 each year, a return, in a form required by the
department, with a remittance of the tax owed for gross receipts
from retail sales occurring during the preceding year, must be
filed with the department by each taxable establishment required
to pay the tax. The filing and remittance may be done
electronically. For the purposes of reporting or paying the
gross receipts tax, the taxable establishment and any agent of
the taxable establishment are subject to the audit and
enforcement provisions of chapter 289A that apply to collections
of the corporate franchise tax. Each return must be
authenticated by the person filing the return or by the person's
agent who is authorized in writing to file the return. Pursuant
to rules adopted by the Department of Revenue, returns may be
filed electronically.
new text end

new text begin Subd. 2. new text end

new text begin Information. new text end

new text begin A person required to report and
pay to the department a tax under sections 295.61 to 295.65
shall keep records, file statements, make returns, and comply
with the provisions of sections 295.61 to 295.65 and the rules
adopted by the department. Each return or statement must
include the information required by the rules of the department.
new text end

Sec. 5.

new text begin [295.64] DEPOSIT OF PROCEEDS.
new text end

new text begin Retail sales gross receipts tax proceeds must be deposited
in the state general fund.
new text end

Sec. 6.

new text begin [295.65] ADMINISTRATION; RULES.
new text end

new text begin The department shall:
new text end

new text begin (1) administer and enforce the provisions of sections
295.61 to 295.65 by applying the provisions of chapter 289A that
apply to administration of the corporate franchise tax to
taxpayers under sections 295.61 to 295.65;
new text end

new text begin (2) cause to be prepared and distributed forms and
information that may be necessary to administer the provisions
of sections 295.61 to 295.65; and
new text end

new text begin (3) adopt rules that may be necessary or appropriate to
administer and enforce the provisions of sections 295.61 to
295.65.
new text end

Sec. 7. new text begin EFFECTIVE DATE.
new text end

new text begin This act is effective for retail sales after December 31,
2004.
new text end