HF 2506

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; abolishing accelerated June 
  1.3             sales tax liability; amending Minnesota Statutes 1996, 
  1.4             sections 289A.18, subdivision 4; 289A.20, subdivision 
  1.5             4; and 289A.60, subdivision 21. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, section 289A.18, 
  1.8   subdivision 4, is amended to read: 
  1.9      Subd. 4.  [SALES AND USE TAX RETURNS.] (a) Sales and use 
  1.10  tax returns must be filed on or before the 20th day of the month 
  1.11  following the close of the preceding reporting period, except 
  1.12  that annual use tax returns provided for under section 289A.11, 
  1.13  subdivision 1, must be filed by April 15 following the close of 
  1.14  the calendar year, in the case of individuals.  Annual use tax 
  1.15  returns of businesses, including sole proprietorships, and 
  1.16  annual sales tax returns must be filed by February 5 following 
  1.17  the close of the calendar year.  
  1.18     (b) Except for the return for the June reporting period, 
  1.19  which is due on the following August 25, Returns filed by 
  1.20  retailers required to remit liabilities by means of funds 
  1.21  transfer under section 289A.20, subdivision 4, 
  1.22  paragraph (d) (c), are due on or before the 25th day of the 
  1.23  month following the close of the preceding reporting period.  
  1.24     (c) If a retailer has an average sales and use tax 
  1.25  liability, including local sales and use taxes administered by 
  2.1   the commissioner, equal to or less than $500 per month in any 
  2.2   quarter of a calendar year, and has substantially complied with 
  2.3   the tax laws during the preceding four calendar quarters, the 
  2.4   retailer may request authorization to file and pay the taxes 
  2.5   quarterly in subsequent calendar quarters.  The authorization 
  2.6   remains in effect during the period in which the retailer's 
  2.7   quarterly returns reflect sales and use tax liabilities of less 
  2.8   than $1,500 and there is continued compliance with state tax 
  2.9   laws. 
  2.10     (d) If a retailer has an average sales and use tax 
  2.11  liability, including local sales and use taxes administered by 
  2.12  the commissioner, equal to or less than $100 per month during a 
  2.13  calendar year, and has substantially complied with the tax laws 
  2.14  during that period, the retailer may request authorization to 
  2.15  file and pay the taxes annually in subsequent years.  The 
  2.16  authorization remains in effect during the period in which the 
  2.17  retailer's annual returns reflect sales and use tax liabilities 
  2.18  of less than $1,200 and there is continued compliance with state 
  2.19  tax laws. 
  2.20     (e) The commissioner may also grant quarterly or annual 
  2.21  filing and payment authorizations to retailers if the 
  2.22  commissioner concludes that the retailers' future tax 
  2.23  liabilities will be less than the monthly totals identified in 
  2.24  paragraphs (c) and (d).  An authorization granted under this 
  2.25  paragraph is subject to the same conditions as an authorization 
  2.26  granted under paragraphs (c) and (d). 
  2.27     Sec. 2.  Minnesota Statutes 1996, section 289A.20, 
  2.28  subdivision 4, is amended to read: 
  2.29     Subd. 4.  [SALES AND USE TAX.] (a) The taxes imposed by 
  2.30  chapter 297A are due and payable to the commissioner monthly on 
  2.31  or before the 20th day of the month following the month in which 
  2.32  the taxable event occurred or following another reporting period 
  2.33  as the commissioner prescribes, except that use taxes due on an 
  2.34  annual use tax return as provided under section 289A.11, 
  2.35  subdivision 1, are payable by April 15 following the close of 
  2.36  the calendar year. 
  3.1      (b) A vendor having a liability of $120,000 or more during 
  3.2   a fiscal year ending June 30 must remit the June liability for 
  3.3   the next year in the following manner: 
  3.4      (1) Two business days before June 30 of the year, the 
  3.5   vendor must remit 75 percent of the estimated June liability to 
  3.6   the commissioner.  
  3.7      (2) On or before August 14 of the year, the vendor must pay 
  3.8   any additional amount of tax not remitted in June. 
  3.9      (c) (b) A vendor having a liability of $120,000 or more 
  3.10  during a fiscal year ending June 30 must remit all liabilities 
  3.11  in the subsequent calendar year by means of a funds transfer as 
  3.12  defined in section 336.4A-104, paragraph (a).  The funds 
  3.13  transfer payment date, as defined in section 336.4A-401, must be 
  3.14  on or before the 14th day of the month following the month in 
  3.15  which the taxable event occurred, except for 75 percent of the 
  3.16  estimated June liability, which is due two business days before 
  3.17  June 30.  The remaining amount of the June liability is due on 
  3.18  August 14.  If the date the tax is due is not a funds transfer 
  3.19  business day, as defined in section 336.4A-105, paragraph (a), 
  3.20  clause (4), the payment date must be on or before the funds 
  3.21  transfer business day next following the date the tax is due. 
  3.22     (d) (c) If the vendor required to remit by electronic funds 
  3.23  transfer as provided in paragraph (c) (b) is unable due to 
  3.24  reasonable cause to determine the actual sales and use tax due 
  3.25  on or before the due date for payment, the vendor may remit an 
  3.26  estimate of the tax owed using one of the following options: 
  3.27     (1) 100 percent of the tax reported on the previous month's 
  3.28  sales and use tax return; 
  3.29     (2) 100 percent of the tax reported on the sales and use 
  3.30  tax return for the same month in the previous calendar year; or 
  3.31     (3) 95 percent of the actual tax due. 
  3.32     Any additional amount of tax that is not remitted on or 
  3.33  before the due date for payment, must be remitted with the 
  3.34  return.  If a vendor fails to remit the actual liability or does 
  3.35  not remit using one of the estimate options by the due date for 
  3.36  payment, the vendor must remit actual liability as provided in 
  4.1   paragraph (c) (b) in all subsequent periods.  This paragraph 
  4.2   does not apply to the June sales and use tax liability. 
  4.3      Sec. 3.  Minnesota Statutes 1996, section 289A.60, 
  4.4   subdivision 21, is amended to read: 
  4.5      Subd. 21.  [PENALTY FOR FAILURE TO MAKE PAYMENT BY 
  4.6   ELECTRONIC FUNDS TRANSFER.] (a) In addition to other applicable 
  4.7   penalties imposed by this section, after notification from the 
  4.8   commissioner to the taxpayer that payments are required to be 
  4.9   made by means of electronic funds transfer under section 
  4.10  289A.20, subdivision 2, paragraph (e), or 4, paragraph (d) (c), 
  4.11  or 289A.26, subdivision 2a, and the payments are remitted by 
  4.12  some other means, there is a penalty in the amount of five 
  4.13  percent of each payment that should have been remitted 
  4.14  electronically.  The penalty can be abated under the abatement 
  4.15  procedures prescribed in section 270.07, subdivision 6, if the 
  4.16  failure to remit the payment electronically is due to reasonable 
  4.17  cause. 
  4.18     (b) The penalty under paragraph (a) does not apply if the 
  4.19  taxpayer pays by other means the amount due at least three 
  4.20  business days before the date the payment is due.  This 
  4.21  paragraph does not apply after December 31, 1997. 
  4.22     Sec. 4.  [EFFECTIVE DATE.] 
  4.23     Sections 1 to 3 are effective January 1, 1998.