HF 4177

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; providing retailers a deduction 
  1.3             from the amount of sales tax remitted to compensate 
  1.4             for costs of collecting the tax; amending Minnesota 
  1.5             Statutes 1998, section 289A.31, subdivision 7. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 289A.31, 
  1.8   subdivision 7, is amended to read: 
  1.9      Subd. 7.  [SALES AND USE TAX.] (a) The sales and use tax 
  1.10  required to be collected by the retailer under chapter 297A 
  1.11  constitutes a debt owed by the retailer to Minnesota, and the 
  1.12  sums collected must be held as a special fund in trust for the 
  1.13  state of Minnesota. 
  1.14     A retailer who does not maintain a place of business within 
  1.15  this state as defined by section 297A.21, subdivision 1, shall 
  1.16  not be indebted to Minnesota for amounts of tax that it was 
  1.17  required to collect but did not collect unless the retailer knew 
  1.18  or had been advised by the commissioner of its obligation to 
  1.19  collect the tax. 
  1.20     (b) The use tax required to be paid by a purchaser is a 
  1.21  debt owed by the purchaser to Minnesota. 
  1.22     (c) The tax imposed by sections 297A.01 to 297A.44, and 
  1.23  interest and penalties, is a personal debt of the individual 
  1.24  required to file a return from the time the liability arises, 
  1.25  irrespective of when the time for payment of that liability 
  2.1   occurs.  The debt is, in the case of the executor or 
  2.2   administrator of the estate of a decedent and in the case of a 
  2.3   fiduciary, that of the individual in an official or fiduciary 
  2.4   capacity unless the individual has voluntarily distributed the 
  2.5   assets held in that capacity without reserving sufficient assets 
  2.6   to pay the tax, interest, and penalties, in which case the 
  2.7   individual is personally liable for the deficiency. 
  2.8      (d) Liability for payment of sales and use taxes includes 
  2.9   any responsible person or entity described in the personal 
  2.10  liability provisions of section 270.101.  
  2.11     (e) Notwithstanding any other provision of this section, a 
  2.12  retailer who is not required by section 289A.20, subdivision 4, 
  2.13  to remit taxes imposed under this chapter by means of electronic 
  2.14  funds transfer in the current year may deduct and retain from 
  2.15  the amount of sales taxes otherwise required to be remitted, if 
  2.16  timely remitted, a retail merchant's collection allowance equal 
  2.17  to the lesser of (i) $100; or (ii) the taxpayer's annual 
  2.18  liability for state sales taxes imposed on items subject to the 
  2.19  general rate under section 297A.02, subdivisions 1 and 4.  
  2.20     Sec. 2.  [EFFECTIVE DATE.] 
  2.21     Section 1 is effective for sales and purchases made after 
  2.22  June 30, 2000.