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HF 4370

as introduced - 90th Legislature (2017 - 2018) Posted on 04/12/2018 02:34pm

KEY: stricken = removed, old language.
underscored = added, new language.
Line numbers 1.1 1.2 1.3 1.4
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2.27

A bill for an act
relating to taxation; sales and use; requiring the commissioner of revenue to reduce
the rates to reflect an increased tax base under certain conditions.

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

Section 1. new text begin SALES TAX RATE ADJUSTMENT IF TAX IS IMPOSED ON REMOTE
SELLERS.
new text end

new text begin Subdivision 1. new text end

new text begin Definitions. new text end

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

new text begin (b) "Day the state begins enforcing a duty to collect and remit sales tax on retailers
without a physical presence in this state, and marketplace providers under Minnesota Statutes,
section 297A.66, subdivision 4," means the earliest of:
new text end

new text begin (i) the first day of a calendar quarter at least 60 days after a decision is made 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 (ii) the first day of a calendar quarter at least 60 days after 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.
new text end

new text begin (c) "Consumer Price Index" means the revised Consumer Price Index for All Urban
Consumers for the Minneapolis-St. Paul metropolitan area prepared by the United States
Department of Labor.
new text end

new text begin Subd. 2. new text end

new text begin Rate adjustment. new text end

new text begin (a) The commissioner of revenue must make an adjustment
to the sales tax rates in Minnesota Statutes, section 297A.62, subdivisions 1 and 1a, effective
for the first day of the calendar quarter beginning 15 months after the day the state begins
enforcing a duty to collect and remit sales tax on retailers without a physical presence in
this state, and marketplace providers under Minnesota Statutes, section 297A.66, subdivision
4. The adjustment must be equal to the reduction necessary to make the total collections
under the sales tax revenue neutral as calculated in paragraph (b).
new text end

new text begin (b) The adjustment factor for each tax rate must be equal to the ratio by which:
new text end

new text begin (1) the revenues collected under Minnesota Statutes, chapter 297A, in the 12-month
period immediately preceding the day the state begins enforcing a duty to collect and remit
sales tax on retailers without a physical presence in this state, and marketplace providers
under Minnesota Statutes, section 297A.66, subdivision 4, multiplied by the change in the
Consumer Price Index for the same 12-month period; bears to
new text end

new text begin (2) the revenues collected under Minnesota Statutes, chapter 297A, in the 12-month
period beginning on the day the state begins enforcing a duty to collect and remit sales tax
on retailers without a physical presence in this state, and marketplace providers under
Minnesota Statutes, section 297A.66, subdivision 4.
new text end

new text begin (c) The adjusted rates must be rounded to the nearest one thousandth of one percent and
are effective for the first calendar quarter at least 15 months after the day the state begins
enforcing a duty to collect and remit sales tax on retailers without a physical presence in
this state, and marketplace providers under Minnesota Statutes, section 297A.66, subdivision
4. The commissioner of revenue must publish the new tax rates in the State Register at least
30 days prior to the rate change going into effect.
new text end

new text begin (d) After the commissioner of revenue publishes the new tax rates in the State Register,
the revisor of statutes must update the tax rates in Minnesota Statutes, section 297A.62,
subdivisions 1 and 1a, in the next edition of Minnesota Statutes.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
new text end