HF 2336

as introduced - 86th Legislature (2009 - 2010) Posted on 02/09/2010 02:03am

A bill for an act
relating to taxation; requiring the Department of Revenue to collect unpaid sales
and local lodging taxes in certain situations.

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

Section 1. new text begin SALES AND LOCAL LODGING TAXES COLLECTION;
DEPARTMENT OF REVENUE.
new text end

new text begin (a) The Department of Revenue shall collect from an online travel company, by all
available means authorized by law for the collection of taxes, the amount of sales and
local lodging taxes uncollected by an online travel company and owed to a city and the
state, plus interest and penalties, on the total rent paid for lodging in a hotel, rooming
house, tourist court, motel, or trailer camp, or for the granting of any similar license
to use real property.
new text end

new text begin (b) For purposes of this section, the following terms have the meanings given:
new text end

new text begin (1) "online travel company" means a person who offers information on the Internet
about the availability of accommodations to a customer, arranges for the customer's
occupancy of the accommodations, and collects the rental payments from the customer for
occupancy of the accommodations;
new text end

new text begin (2) "total rent paid" means the cost of lodging;
new text end

new text begin (3) "unpaid amount of sales and local lodging taxes" means the state sales tax rate as
defined in Minnesota Statutes, section 297A.62, subdivision 1, plus the applicable local
lodging tax rate as applied against the total rent paid by a customer to an online travel
company less the amount of sales and local lodging taxes collected by the online travel
company and remitted to a lodging entity at the time the online travel company purchased
the right to make reservations on behalf of a customer to rent a lodging accommodation.
new text end

new text begin (c) A city that imposes a local lodging tax must make a request to the Department of
Revenue for action to be taken under this section.
new text end

new text begin (d) The commissioner of revenue may request the attorney general to conduct legal
proceedings, if necessary, on behalf of the state to enforce the provisions of this section.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end