HF 4102

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; authorizing the commissioner of 
  1.3             revenue to enter into agreements with other states to 
  1.4             develop a multistate system for sales and use tax 
  1.5             collection. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  [DEVELOPMENT OF SALES AND USE TAX COLLECTION 
  1.8   SYSTEM.] 
  1.9      Subdivision 1.  [AUTHORIZATION TO ENTER INTO MULTISTATE 
  1.10  DISCUSSIONS.] The commissioner of revenue may enter into 
  1.11  discussions with states regarding development of a multistate, 
  1.12  voluntary, streamlined system for sales and use tax collection 
  1.13  and administration.  These discussions will focus on development 
  1.14  of a system that is capable of determining whether a transaction 
  1.15  is taxable or exempt, the appropriate tax rate applied to the 
  1.16  transaction, and the total tax due on the transaction, and shall 
  1.17  provide a method for collecting and remitting sales and use 
  1.18  taxes to the state.  The system may provide compensation for the 
  1.19  costs of collecting and remitting sales and use taxes.  
  1.20  Discussions between the department and other states may result 
  1.21  in developing and issuing a joint request for information from 
  1.22  public and private potential parties.  The commissioner must 
  1.23  publish the notices in the State Register. 
  1.24     Subd. 2.  [LIMITED TEST AUTHORIZATION.] (a) The 
  1.25  commissioner may participate in a sales tax pilot project with 
  2.1   other states and selected businesses to test a means for 
  2.2   simplifying sales and use tax administration, and may enter into 
  2.3   joint agreements for that purpose. 
  2.4      (b) Agreements to participate in the test will establish 
  2.5   provisions for the administration, imposition, and collection of 
  2.6   sales and use taxes resulting in revenues paid by the taxpayer 
  2.7   that are the same as would be paid under existing law. 
  2.8      (c) Parties to the agreements are excused from complying 
  2.9   with the provisions of Minnesota Statutes, chapters 289A and 
  2.10  297A, to the extent a different procedure is required by the 
  2.11  agreements. 
  2.12     (d) Agreements authorized under this section terminate no 
  2.13  later than December 31, 2001. 
  2.14     Subd. 3.  [DISCLOSURE.] Any agreements entered into under 
  2.15  subdivision 1 or 2 are subject to the provisions of Minnesota 
  2.16  Statutes, chapter 270B. 
  2.17     Subd. 4.  [REPORT ON PROJECT.] By March 1, 2002, the 
  2.18  commissioner shall report to the chairs of the house of 
  2.19  representatives tax committee and the senate committee on 
  2.20  taxes.  The report must describe the status of multistate 
  2.21  discussions conducted under subdivision 1 and, if a proposed 
  2.22  system has been agreed upon by participating states, must also 
  2.23  recommend whether the state should participate in the system. 
  2.24     Sec. 2.  [EFFECTIVE DATE.] 
  2.25     Section 1 is effective the day following final enactment.