HF 3215

as introduced - 79th Legislature (1995 - 1996) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; repealing certain obsolete laws 
  1.3             and removing obsolete references; amending Minnesota 
  1.4             Statutes 1994, sections 290.0922, subdivision 3; 
  1.5             290.095, subdivision 3; 297A.15, subdivisions 5 and 6; 
  1.6             297A.21, subdivision 4; 297A.211, subdivision 3; 
  1.7             297A.24, subdivision 1; 297A.2572; 297A.2573; 297A.44, 
  1.8             subdivision 1; 297A.46; and 298.01, subdivision 4e; 
  1.9             Minnesota Statutes 1995 Supplement, section 297A.45, 
  1.10            subdivisions 2, 3, and 4; repealing Minnesota Statutes 
  1.11            1994, sections 290.06, subdivision 21; 290.092; 
  1.12            295.37; 295.39; 295.40; 295.41; 295.42; 295.43; 
  1.13            297A.14, subdivision 3; and 297A.24, subdivision 2. 
  1.14  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.15     Section 1.  Minnesota Statutes 1994, section 290.0922, 
  1.16  subdivision 3, is amended to read: 
  1.17     Subd. 3.  [DEFINITION DEFINITIONS.] (a) "Minnesota sales or 
  1.18  receipts," means the total sales apportioned to Minnesota 
  1.19  pursuant to section 290.191, subdivision 5, the total receipts 
  1.20  attributed to Minnesota pursuant to section 290.191, 
  1.21  subdivisions 6 to 8, and/or the total sales or receipts 
  1.22  apportioned or attributed to Minnesota pursuant to any other 
  1.23  apportionment formula applicable to the taxpayer. 
  1.24     (b) "Minnesota property," and means total Minnesota 
  1.25  tangible property as provided in section 290.191, subdivisions 9 
  1.26  to 11, and any other tangible property located in Minnesota.  
  1.27  Intangible property shall not be included in Minnesota property 
  1.28  for purposes of this section.  Taxpayers who do not utilize 
  1.29  tangible property to apportion income shall nevertheless include 
  2.1   Minnesota property for purposes of this section.  On a return 
  2.2   for a short taxable year, the amount of Minnesota property 
  2.3   owned, as determined under section 290.191, shall be included in 
  2.4   Minnesota property based on a fraction in which the numerator is 
  2.5   the number of days in the short taxable year and the denominator 
  2.6   is 365.  
  2.7      (c) "Minnesota payrolls" have the meanings given in section 
  2.8   290.092, subdivision 4 means total Minnesota payrolls as 
  2.9   provided in section 290.191, subdivision 12.  Taxpayers who do 
  2.10  not utilize payrolls to apportion income shall nevertheless 
  2.11  include Minnesota payrolls for purposes of this section. 
  2.12     Sec. 2.  Minnesota Statutes 1994, section 290.095, 
  2.13  subdivision 3, is amended to read: 
  2.14     Subd. 3.  [CARRYOVER.] (a) A net operating loss incurred in 
  2.15  a taxable year:  (i) beginning after December 31, 1986, shall be 
  2.16  a net operating loss carryover to each of the 15 taxable years 
  2.17  following the taxable year of such loss; (ii) beginning before 
  2.18  January 1, 1987, shall be a net operating loss carryover to each 
  2.19  of the five taxable years following the taxable year of such 
  2.20  loss subject to the provisions of Minnesota Statutes 1986, 
  2.21  section 290.095; and (iii) beginning before January 1, 1987, 
  2.22  shall be a net operating loss carryback to each of the three 
  2.23  taxable years preceding the loss year subject to the provisions 
  2.24  of Minnesota Statutes 1986, section 290.095. 
  2.25     (b) The entire amount of the net operating loss for any 
  2.26  taxable year shall be carried to the earliest of the taxable 
  2.27  years to which such loss may be carried.  The portion of such 
  2.28  loss which shall be carried to each of the other taxable years 
  2.29  shall be the excess, if any, of the amount of such loss over the 
  2.30  sum of the taxable net income, adjusted by the modifications 
  2.31  specified in subdivision 4, for each of the taxable years to 
  2.32  which such loss may be carried. 
  2.33     (c) Where a corporation does business both within and 
  2.34  without Minnesota, and apportions its income under the 
  2.35  provisions of section 290.191, the net operating loss deduction 
  2.36  incurred in any taxable year shall be allowed to the extent of 
  3.1   the apportionment ratio of the loss year. 
  3.2      (d) No additional net operating loss deduction is allowed 
  3.3   in a subsequent taxable year for the portion of a net operating 
  3.4   loss deduction incurred in any taxable year used to offset 
  3.5   Minnesota income in a year in which the taxpayer is subject to 
  3.6   the alternative minimum tax in section 290.092. 
  3.7      (e) The provisions of sections 381, 382, and 384 of the 
  3.8   Internal Revenue Code apply to carryovers in certain corporate 
  3.9   acquisitions and special limitations on net operating loss 
  3.10  carryovers. 
  3.11     Sec. 3.  Minnesota Statutes 1994, section 297A.15, 
  3.12  subdivision 5, is amended to read: 
  3.13     Subd. 5.  [REFUND; APPROPRIATION.] Notwithstanding the 
  3.14  provisions of sections 297A.02, subdivision 5, and 297A.25, 
  3.15  subdivisions subdivision 42 and 50, the tax on sales of capital 
  3.16  equipment, and replacement capital equipment, and construction 
  3.17  materials and supplies under section 297A.25, subdivision 50, 
  3.18  shall be imposed and collected as if the rates rate under 
  3.19  sections section 297A.02, subdivision 1, and 297A.021, applied.  
  3.20  Upon application by the purchaser, on forms prescribed by the 
  3.21  commissioner, a refund equal to the reduction in the tax due as 
  3.22  a result of the application of the exemption under section 
  3.23  297A.25, subdivision 42 or 50, and the rates under sections 
  3.24  section 297A.02, subdivision 5, and 297A.021 shall be paid to 
  3.25  the purchaser.  In the case of building materials qualifying 
  3.26  under section 297A.25, subdivision 50, where the tax was paid by 
  3.27  a contractor, application must be made by the owner for the 
  3.28  sales tax paid by all the contractors, subcontractors, and 
  3.29  builders for the project.  The application must include 
  3.30  sufficient information to permit the commissioner to verify the 
  3.31  sales tax paid for the project.  The application shall include 
  3.32  information necessary for the commissioner initially to verify 
  3.33  that the purchases qualified as capital equipment under section 
  3.34  297A.25, subdivision 42, or replacement capital equipment under 
  3.35  section 297A.01, subdivision 20, or capital equipment or 
  3.36  construction materials and supplies under section 297A.25, 
  4.1   subdivision 50.  No more than two applications for refunds may 
  4.2   be filed under this subdivision in a calendar year.  No owner 
  4.3   may apply for a refund based on the exemption under section 
  4.4   297A.25, subdivision 50, before July 1, 1993.  Unless otherwise 
  4.5   specifically provided by this subdivision, the provisions of 
  4.6   section 289A.40 apply to the refunds payable under this 
  4.7   subdivision.  There is annually appropriated to the commissioner 
  4.8   of revenue the amount required to make the refunds. 
  4.9      The amount to be refunded shall bear interest at the rate 
  4.10  in section 270.76 from the date the refund claim is filed with 
  4.11  the commissioner. 
  4.12     Sec. 4.  Minnesota Statutes 1994, section 297A.15, 
  4.13  subdivision 6, is amended to read: 
  4.14     Subd. 6.  [REFUND; APPROPRIATION.] The tax on the gross 
  4.15  receipts from the sale of items exempt under section 297A.25, 
  4.16  subdivision 43, must be imposed and collected as if the sale 
  4.17  were taxable and the rates rate under sections section 297A.02, 
  4.18  subdivision 1, and 297A.021 applied. 
  4.19     Upon application by the owner of the homestead property on 
  4.20  forms prescribed by the commissioner, a refund equal to the tax 
  4.21  paid on the gross receipts of the building materials and 
  4.22  equipment must be paid to the homeowner.  In the case of 
  4.23  building materials in which the tax was paid by a contractor, 
  4.24  application must be made by the homeowner for the sales tax paid 
  4.25  by the contractor.  The application must include sufficient 
  4.26  information to permit the commissioner to verify the sales tax 
  4.27  paid for the project.  The contractor must furnish to the 
  4.28  homeowner a statement of the cost of building materials and the 
  4.29  sales taxes paid on the materials.  The amount required to make 
  4.30  the refunds is annually appropriated to the commissioner.  
  4.31  Interest must be paid on the refund at the rate in section 
  4.32  270.76 from 60 days after the date the refund claim is filed 
  4.33  with the commissioner. 
  4.34     Sec. 5.  Minnesota Statutes 1994, section 297A.21, 
  4.35  subdivision 4, is amended to read: 
  4.36     Subd. 4.  [REQUIRED REGISTRATION BY OUT-OF-STATE RETAILER 
  5.1   NOT MAINTAINING PLACE OF BUSINESS IN MINNESOTA.] (a) A retailer 
  5.2   making retail sales from outside this state to a destination 
  5.3   within this state and not maintaining a place of business in 
  5.4   this state shall file an application for a permit pursuant to 
  5.5   section 297A.04 and shall collect and remit the use tax as 
  5.6   provided in section 297A.16 if the retailer engages in the 
  5.7   regular or systematic soliciting of sales from potential 
  5.8   customers in this state by: 
  5.9      (1) the distribution, by mail or otherwise, without regard 
  5.10  to the state from which such distribution originated or in which 
  5.11  the materials were prepared, of catalogs, periodicals, 
  5.12  advertising flyers, or other written solicitations of business 
  5.13  to customers in this state; 
  5.14     (2) display of advertisements on billboards or other 
  5.15  outdoor advertising in this state; 
  5.16     (3) advertisements in newspapers published in this state; 
  5.17     (4) advertisements in trade journals or other periodicals 
  5.18  the circulation of which is primarily within this state; 
  5.19     (5) advertisements in a Minnesota edition of a national or 
  5.20  regional publication or a limited regional edition in which this 
  5.21  state is included of a broader regional or national publication 
  5.22  which are not placed in other geographically defined editions of 
  5.23  the same issue of the same publication; 
  5.24     (6) advertisements in regional or national publications in 
  5.25  an edition which is not by its contents geographically targeted 
  5.26  to Minnesota but which is sold over the counter in Minnesota or 
  5.27  by subscription to Minnesota residents; 
  5.28     (7) advertisements broadcast on a radio or television 
  5.29  station located in Minnesota; or 
  5.30     (8) any other solicitation by telegraphy, telephone, 
  5.31  computer database, cable, optic, microwave, or other 
  5.32  communication system. 
  5.33     (b) The location within or without this state of vendors 
  5.34  independent of the retailer which provide products or services 
  5.35  to the retailer in connection with its solicitation of customers 
  5.36  within this state, including such products and services as 
  6.1   creation of copy, printing, distribution, and recording, is not 
  6.2   to be taken into account in the determination of whether the 
  6.3   retailer is required to collect use tax.  Paragraph (a) shall be 
  6.4   construed without regard to the state from which distribution of 
  6.5   the materials originated or in which they were prepared.  
  6.6      (c) A retailer not maintaining a place of business in this 
  6.7   state shall be presumed, subject to rebuttal, to be engaged in 
  6.8   regular solicitation within this state if it engages in any of 
  6.9   the activities in paragraph (a) and (1) makes 100 or more retail 
  6.10  sales from outside this state to destinations within this state 
  6.11  during a period of 12 consecutive months, or (2) makes ten or 
  6.12  more retail sales totaling more than $100,000 from outside this 
  6.13  state to destinations within this state during a period of 12 
  6.14  consecutive months. 
  6.15     (d) A retailer not maintaining a place of business in this 
  6.16  state shall not be required to collect use tax imposed by any 
  6.17  local governmental unit or subdivision of this state and this 
  6.18  section does not subject such a retailer to any regulation of 
  6.19  any local unit of government or subdivision of this state.  This 
  6.20  paragraph does not apply to the tax imposed under section 
  6.21  297A.021. 
  6.22     Sec. 6.  Minnesota Statutes 1994, section 297A.211, 
  6.23  subdivision 3, is amended to read: 
  6.24     Subd. 3.  A person who pays the tax to the seller under 
  6.25  section 297A.03 or pays the tax to the motor vehicle registrar 
  6.26  as required by section 297B.02 and who meets the requirements of 
  6.27  this section at the time of the sale, except that the person has 
  6.28  not registered as a retailer under this section at the time of 
  6.29  the sale, may register as a retailer, make a return, and file 
  6.30  for a refund of the difference between the tax calculated under 
  6.31  section 297A.02, 297A.021, 297A.14, or 297B.02 and the tax 
  6.32  calculated under subdivision 2.  
  6.33     Sec. 7.  Minnesota Statutes 1994, section 297A.24, 
  6.34  subdivision 1, is amended to read: 
  6.35     Subdivision 1.  [STATE TAX.] If any article of tangible 
  6.36  personal property or any item enumerated in section 297A.14 has 
  7.1   already been subjected to a tax by any other state in respect of 
  7.2   its sale, storage, use or other consumption in an amount less 
  7.3   than the tax imposed by sections 297A.01 to 297A.44, then as to 
  7.4   the person who paid the tax in such other state, the provisions 
  7.5   of section 297A.14 shall apply only at a rate measured by the 
  7.6   difference between the sum of the rates rate imposed under 
  7.7   sections section 297A.02 and 297A.021 and the rate by which the 
  7.8   previous tax was computed.  If such tax imposed in such other 
  7.9   state was equal to or greater than the tax imposed in this 
  7.10  state, then no tax shall be due from such person under section 
  7.11  297A.14. 
  7.12     Sec. 8.  Minnesota Statutes 1994, section 297A.2572, is 
  7.13  amended to read: 
  7.14     297A.2572 [AGRICULTURE PROCESSING FACILITY MATERIALS; 
  7.15  EXEMPTION.] 
  7.16     Purchases of construction materials and supplies are exempt 
  7.17  from the sales and use taxes imposed under this chapter, 
  7.18  regardless of whether purchased by the owner or a contractor, 
  7.19  subcontractor, or builder, if the materials and supplies are 
  7.20  used or consumed in constructing an agriculture processing 
  7.21  facility as defined in section 469.1811 in which the total 
  7.22  capital investment in the processing facility is expected to 
  7.23  exceed $100,000,000.  The tax shall be imposed and collected as 
  7.24  if the rates rate under sections section 297A.02, subdivision 1, 
  7.25  and 297A.021, applied, and then refunded in the manner provided 
  7.26  in section 297A.15, subdivision 5. 
  7.27     Sec. 9.  Minnesota Statutes 1994, section 297A.2573, is 
  7.28  amended to read: 
  7.29     297A.2573 [MINERAL PRODUCTION FACILITIES; EXEMPTION.] 
  7.30     Materials, equipment, and supplies used or consumed in 
  7.31  constructing, or incorporated into the construction of exempted 
  7.32  facilities as defined in this section are exempt from the taxes 
  7.33  imposed under this chapter and from any sales and use tax 
  7.34  imposed by a local unit of government, notwithstanding any 
  7.35  ordinance or city charter provision. 
  7.36     As used in this section, "exempted facilities" means: 
  8.1      (1) a value added iron products plant, which may be either 
  8.2   a new plant or a facility incorporated into an existing plant 
  8.3   that produces iron upgraded to a minimum of 75 percent iron 
  8.4   content or any iron alloy with a total minimum metallic content 
  8.5   of 90 percent; 
  8.6      (2) a facility used for the manufacture of fluxed taconite 
  8.7   pellets as defined in section 298.24; 
  8.8      (3) a new capital project that has a total cost of over 
  8.9   $40,000,000 that is directly related to production, cost, or 
  8.10  quality at an existing taconite facility that does not qualify 
  8.11  under clause (1) or (2); and 
  8.12     (4) a new mine or minerals processing plant for any mineral 
  8.13  subject to the net proceeds tax imposed under section 298.015. 
  8.14     The tax shall be imposed and collected as if the rates rate 
  8.15  under sections section 297A.02, subdivision 1, and 297A.021, 
  8.16  applied, and then refunded in the manner provided in section 
  8.17  297A.15, subdivision 5. 
  8.18     Sec. 10.  Minnesota Statutes 1994, section 297A.44, 
  8.19  subdivision 1, is amended to read: 
  8.20     Subdivision 1.  (a) Except as provided in paragraphs (b), 
  8.21  (c), and (d), all revenues, including interest and penalties, 
  8.22  derived from the excise and use taxes imposed by sections 
  8.23  297A.01 to 297A.44 shall be deposited by the commissioner in the 
  8.24  state treasury and credited to the general fund.  
  8.25     (b) All excise and use taxes derived from sales and use of 
  8.26  property and services purchased for the construction and 
  8.27  operation of an agricultural resource project, from and after 
  8.28  the date on which a conditional commitment for a loan guaranty 
  8.29  for the project is made pursuant to section 41A.04, subdivision 
  8.30  3, shall be deposited in the Minnesota agricultural and economic 
  8.31  account in the special revenue fund.  The commissioner of 
  8.32  finance shall certify to the commissioner the date on which the 
  8.33  project received the conditional commitment.  The amount 
  8.34  deposited in the loan guaranty account shall be reduced by any 
  8.35  refunds and by the costs incurred by the department of revenue 
  8.36  to administer and enforce the assessment and collection of the 
  9.1   taxes.  
  9.2      (c) All revenues, including interest and penalties, derived 
  9.3   from the excise and use taxes imposed on sales and purchases 
  9.4   included in section 297A.01, subdivision 3, paragraphs (d) and 
  9.5   (l), clauses (1) and (2), must be deposited by the commissioner 
  9.6   in the state treasury, and credited as follows: 
  9.7      (1) first to the general obligation special tax bond debt 
  9.8   service account in each fiscal year the amount required by 
  9.9   section 16A.661, subdivision 3, paragraph (b); and 
  9.10     (2) after the requirements of clause (1) have been met, the 
  9.11  balance must be credited to the general fund. 
  9.12     (d) The revenues, including interest and penalties, derived 
  9.13  from the taxes imposed on solid waste collection services as 
  9.14  described in section 297A.45, except for the tax imposed under 
  9.15  section 297A.021, shall be deposited by the commissioner in the 
  9.16  state treasury and credited to the general fund to be used for 
  9.17  funding solid waste reduction and recycling programs. 
  9.18     Sec. 11.  Minnesota Statutes 1995 Supplement, section 
  9.19  297A.45, subdivision 2, is amended to read: 
  9.20     Subd. 2.  [APPLICATION.] The taxes tax imposed by 
  9.21  sections section 297A.02 and 297A.021 apply applies to all 
  9.22  public and private mixed municipal solid waste management 
  9.23  services.  
  9.24     Notwithstanding section 297A.25, subdivision 11, a 
  9.25  political subdivision that purchases waste management services 
  9.26  on behalf of its citizens shall pay the taxes. 
  9.27     If a political subdivision provides a waste management 
  9.28  service to its residents at a cost in excess of the total direct 
  9.29  charge to the residents for the service, the political 
  9.30  subdivision shall pay the taxes based on its cost of providing 
  9.31  the service in excess of the direct charges.  
  9.32     A person who transports mixed municipal solid waste 
  9.33  generated by that person or by another person without 
  9.34  compensation shall pay the taxes at the waste facility based on 
  9.35  the disposal charge or tipping fee. 
  9.36     Sec. 12.  Minnesota Statutes 1995 Supplement, section 
 10.1   297A.45, subdivision 3, is amended to read: 
 10.2      Subd. 3.  [EXEMPTIONS.] (a) The cost of a service or the 
 10.3   portion of a service to collect and manage recyclable materials 
 10.4   separated from mixed municipal solid waste by the waste 
 10.5   generator is exempt from the taxes tax imposed in sections 
 10.6   section 297A.02 and 297A.021. 
 10.7      (b) The amount of a surcharge or fee imposed under section 
 10.8   115A.919, 115A.921, 115A.923, or 473.843 is exempt from the 
 10.9   taxes tax imposed in sections section 297A.02 and 297A.021. 
 10.10     (c) Waste from a recycling facility that separates or 
 10.11  processes recyclable materials and that reduces the volume of 
 10.12  the waste by at least 85 percent is exempt from the taxes tax 
 10.13  imposed in sections section 297A.02 and 297A.021.  To qualify 
 10.14  for the exemption under this paragraph, the waste exempted must 
 10.15  be managed separately from other solid waste. 
 10.16     (d) The following costs are exempt from the taxes tax 
 10.17  imposed in sections section 297A.02 and 297A.021: 
 10.18     (1) costs of providing educational materials and other 
 10.19  information to residents; 
 10.20     (2) costs of managing solid waste other than mixed 
 10.21  municipal solid waste, including household hazardous waste; and 
 10.22     (3) costs of court litigation and associated damages. 
 10.23     (e) The cost of a waste management service is exempt from 
 10.24  the taxes tax imposed in sections section 297A.02 and 297A.021 
 10.25  to the extent that the cost was previously subject to the tax. 
 10.26     Sec. 13.  Minnesota Statutes 1995 Supplement, section 
 10.27  297A.45, subdivision 4, is amended to read: 
 10.28     Subd. 4.  [CITY SALES TAX MAY NOT BE IMPOSED.] 
 10.29  Notwithstanding any other law or charter provision to the 
 10.30  contrary, a home rule charter or statutory city that imposes a 
 10.31  general sales tax may not impose the sales tax on solid waste 
 10.32  management services that are subject to the tax under this 
 10.33  section.  This subdivision does not apply to a tax imposed under 
 10.34  section 297A.021.  
 10.35     Sec. 14.  Minnesota Statutes 1994, section 297A.46, is 
 10.36  amended to read: 
 11.1      297A.46 [LOCAL GOVERNMENTS EXEMPT FROM LOCAL SALES TAXES.] 
 11.2      Notwithstanding any other law, ordinance, or charter 
 11.3   provision, no political subdivision of the state shall be 
 11.4   required to pay any general sales tax imposed by a political 
 11.5   subdivision of the state.  This provision does not apply to the 
 11.6   local option tax under section 297A.021. 
 11.7      Sec. 15.  Minnesota Statutes 1994, section 298.01, 
 11.8   subdivision 4e, is amended to read: 
 11.9      Subd. 4e.  [ALTERNATIVE MINIMUM TAX CREDIT.] (a) A credit 
 11.10  is allowed against the tax imposed by subdivision 4 for the 
 11.11  increases in occupation taxes paid in 1988, 1989, and 1990 
 11.12  attributable to the alternative minimum tax imposed under 
 11.13  section 290.092 and Minnesota Statutes 1986, section 298.40.  
 11.14  The amount of the credit allowed under this paragraph is 
 11.15  determined under section 290.06, subdivision 21. 
 11.16     (b) A credit is allowed against qualified regular tax for 
 11.17  qualified alternative minimum tax previously paid.  The amount 
 11.18  of the credit allowed under this paragraph is determined under 
 11.19  section 290.0921, subdivision 8.  For purposes of calculating 
 11.20  this credit, the following terms have the meanings given: 
 11.21     (1) "Qualified alternative minimum tax" means the amount 
 11.22  determined under subdivision 4d and section 290.0921, 
 11.23  subdivision 1. 
 11.24     (2) "Qualified regular tax" means the tax imposed under 
 11.25  subdivision 4 and section 290.06, subdivision 1. 
 11.26     Sec. 16.  [REPEALER.] 
 11.27     Subdivision 1.  [GROSS EARNINGS TAXES ON TRUST 
 11.28  COMPANIES.] Minnesota Statutes 1994, sections 295.37; 295.39; 
 11.29  295.40; 295.41; 295.42; and 295.43, are repealed. 
 11.30     Subd. 2.  [LOCAL OPTION SALES TAX REFERENCES.] Minnesota 
 11.31  Statutes 1994, sections 297A.14, subdivision 3; and 297A.24, 
 11.32  subdivision 2, are repealed. 
 11.33     Subd. 3.  [CORPORATE ALTERNATIVE MINIMUM TAX; BEFORE 1990.] 
 11.34  Minnesota Statutes 1994, sections 290.06, subdivision 21; and 
 11.35  290.092, are repealed. 
 11.36     Sec. 17.  [EFFECTIVE DATE.] 
 12.1      The amendments in section 3 striking references to section 
 12.2   297A.021 and sections 4 to 14 and 16, subdivision 2, are 
 12.3   effective July 1, 1996.