HF 3566

as introduced - 90th Legislature (2017 - 2018) Posted on 03/08/2018 02:39pm

A bill for an act
relating to taxation; sales and use; modifying and limiting liability collection and
remittance; amending Minnesota Statutes 2017 Supplement, section 297A.66,
subdivision 4b.

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

Section 1.

Minnesota Statutes 2017 Supplement, section 297A.66, subdivision 4b, is
amended to read:

Subd. 4b.

Collection and remittance requirements for marketplace providers and
marketplace retailers.

(a) A marketplace provider shall collect sales and use taxes and
remit them to the commissioner under section 297A.77 for all facilitated sales for a retailer,
and is subject to audit on the retail sales it facilitates unless deleted text begin either deleted text end :

(1) the retailer provides a copy of the retailer's registration to collect sales and use tax
in this state to the marketplace provider before the marketplace provider facilitates a sale;
deleted text begin or
deleted text end

(2) upon inquiry by the marketplace provider or its agent, the commissioner discloses
that the retailer is registered to collect sales and use taxes in this state deleted text begin . deleted text end new text begin ; or
new text end

new text begin (3) the retailer provides the marketplace provider written confirmation that it is exempt
from collecting and remitting the tax under subdivision 2, paragraph (b), and the marketplace
provider has not facilitated at least $10,000 of sales for the retailer in any 12-month period
ending on the last day of a calendar quarter that ended at least three months prior to the
current calendar quarter.
new text end

(b) Nothing in this subdivision shall be construed to interfere with the ability of a
marketplace provider and a retailer to enter into an agreement regarding fulfillment of the
requirements of this chapter new text begin , including the assignment of fiscal liability for payment of taxes
due under this chapter new text end .

(c) A marketplace provider is not liable under this subdivision for failure to file and
collect and remit sales and use taxes if the marketplace provider demonstrates that the error
was due to incorrect or insufficient information given to the marketplace provider by the
retailer. This paragraph does not apply if the marketplace provider and the marketplace
retailer are related as defined in subdivision 4, paragraph (b).

new text begin (d) If a marketplace provider provides the commissioner a copy of an agreement with
a retailer that assigns fiscal liability to the retailer for payment of taxes due under this chapter,
the commissioner must assign fiscal liability to the retailer for underpayment of taxes
resulting from an audit of the marketplace provider under this subdivision. This paragraph
only applies if the agreement contains information sufficient for the commissioner to assign
fiscal liability to the retailer for payment of the taxes under this chapter in a form and manner
prescribed by the commissioner.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin (a) This section is effective at the earlier of:
new text end

new text begin (1) a decision by the United States Supreme Court modifying its decision in Quill Corp.
v. North Dakota, 504 U.S. 298 (1992) so that a state may require retailers without a physical
presence in the state to collect and remit sales tax; or
new text end

new text begin (2) July 1, 2020.
new text end

new text begin (b) Notwithstanding paragraph (a) or the provisions of Minnesota Statutes, section
297A.66, subdivisions 1, 2, and 4, and section 1, if a federal law is enacted authorizing a
state to impose a requirement to collect and remit sales tax on retailers without a physical
presence in the state, the commissioner must enforce the provisions of this section and
section 1 to the extent allowed under federal law.
new text end

new text begin (c) The commissioner of revenue shall notify the revisor of statutes when either of the
provisions in paragraph (a) or (b) apply.
new text end