HF 3955

as introduced - 89th Legislature (2015 - 2016) Posted on 04/21/2016 08:11am

A bill for an act
relating to taxation; imposing an additional tax on certain large retailers;
proposing coding for new law in Minnesota Statutes, chapter 290.

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

Section 1.

new text begin [290.0923] TAX ON LARGE RETAILERS.
new text end

new text begin Subdivision 1. new text end

new text begin Imposition. new text end

new text begin In addition to any other tax imposed by this chapter
without regard to this section, a tax is imposed on any entity subject to tax under section
290.0922, subdivision 1, that owns or operates any large retail store in the state. For a
large retail store that is leased, the tax is applied only once and is a joint and several
liability of the owner and the operator-lessee.
new text end

new text begin Subd. 2. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following terms have the
meanings given in this subdivision.
new text end

new text begin (b) "Large retail store" means a stand-alone retail establishment with at least 50,000
square feet of retail space located in a structure where no more than two stories are used
for retail space accessible to customers and with an adjacent, privately owned parking lot
for its customers and employees that is 50,000 square feet or more. "Large retail store"
includes a retail establishment located in a mall or similar facility if the establishment has
at least 50,000 square feet of retail space managed or operated by a single entity, and
occupies at least 25 percent of the total retail space in the mall or similar facility.
new text end

new text begin (c) "Parking space" means the square footage of space available for parking by
customers or employees of the large retail store owned or leased by the large retail store
and controlled by the store for the benefit of its operations. Parking space does not include
(1) loading, unloading, and delivery areas not generally available for customer parking
except short-term for purchase pickup, or (2) parking facilities owned by a municipality or
other entity for general public use. Parking space for a large retail store located in a mall or
similar facility means only the square footage of parking space dedicated exclusively for the
use of customers and employees of the large retail store, and excludes all parking accessible
to customers or employees of all retail establishments located in the mall or similar facility.
new text end

new text begin (d) "Retail establishment" means a business that is classified under sector 44-45 in
the North American Industry Classification System, except for automobile dealers under
sector 4411, other motor vehicle dealers under sector 4412, and nonstore retailers under
sector 454.
new text end

new text begin (e) "Retail space" means the square footage of space devoted to displaying and
storing merchandise, including attached merchandise storage space, changing rooms
and restrooms, areas for processing transactions with customers, and spaces used to
provide other services that a customer may access without leaving the retail establishment
including but not limited to an in-store restaurant, photo processing service, or hair salon.
Retail space does not include administrative and office space, employee break rooms, and
similar spaces not generally accessible to customers.
new text end

new text begin Subd. 3. new text end

new text begin Tax rate. new text end

new text begin A tax is imposed at the rate of $....... for every 10,000 square feet
or portion thereof of retail space in a large retail store in excess of 50,000 square feet and
at a rate of $....... for every 10,000 square feet or portion thereof of a large retail store's
parking space in excess of 50,000 square feet of parking space.
new text end

new text begin Subd. 4. new text end

new text begin Lien. new text end

new text begin Any unpaid tax due under this section is a lien against the property in
the same manner provided for ad valorem property taxes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for returns filed for taxable years
beginning after December 31, 2016.
new text end