Minnesota Legislature
HF 4504
as introduced - 93rd Legislature (2023 - 2024) Posted on 03/04/2024 02:28pm
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| Introduction | Posted on 03/01/2024 |
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A bill for an act
relating to transportation; repealing a retail delivery tax; amending Minnesota
Statutes 2023 Supplement, sections 174.49, subdivision 2; 270C.15; repealing
Minnesota Statutes 2023 Supplement, sections 168E.01; 168E.03; 168E.05;
168E.07; 168E.09.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2023 Supplement, section 174.49, subdivision 2, is amended
to read:
Subd. 2.
Transportation advancement account.
A transportation advancement account
is established in the special revenue fund. The account consists of funds under deleted text begin sections
168E.09, subdivision 2, anddeleted text end new text begin sectionnew text end 297A.94deleted text begin ,deleted text end and as provided by law and any other money
donated, allotted, transferred, or otherwise provided to the account.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2023 Supplement, section 270C.15, is amended to read:
270C.15 REVENUE DEPARTMENT SERVICE AND RECOVERY SPECIAL
REVENUE FUND.
A Revenue Department service and recovery special revenue fund is created for the
purpose of recovering the costs of furnishing government data and related services or
products, as well as recovering costs associated with collecting local taxes on sales deleted text begin and the
retail delivery fee established under chapter deleted text end deleted text begin 168Edeleted text end . All money collected under this section
is deposited in the Revenue Department service and recovery special revenue fund. Money
in the fund is appropriated to the commissioner to reimburse the department for the costs
incurred in administering the tax law or providing the data, service, or product. Any money
paid to the department as a criminal fine for a violation of state revenue law that is designated
by the court to fund enforcement of state revenue law is appropriated to this fund.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2023 Supplement, sections 168E.01; 168E.03; 168E.05; 168E.07;
and 168E.09,
new text end
new text begin
are repealed.
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
APPENDIX
Repealed Minnesota Statutes: 24-07262
168E.01 DEFINITIONS.
Subdivision 1.
Scope.
As used in this chapter, the following terms have the meanings given.
Subd. 2.
Accessories and supplies.
"Accessories and supplies" has the meaning given in section 297A.67, subdivision 7a.
Subd. 3.
Baby products.
"Baby products" means breast pumps, baby bottles and nipples, pacifiers, teething rings, infant syringes, baby wipes, cribs and bassinets, crib and bassinet mattresses, crib and bassinet sheets, changing tables, changing pads, strollers, car seats and car seat bases, baby swings, bottle sterilizers, and infant eating utensils.
Subd. 5.
Commissioner.
"Commissioner" means the commissioner of revenue.
Subd. 6.
Drugs and medical devices.
"Drugs and medical devices" has the meaning given in section 297A.67, subdivision 7.
Subd. 7.
Food and beverage service establishment.
"Food and beverage service establishment" has the meaning given in section 157.15, subdivision 5.
Subd. 8.
Food and food ingredients.
"Food and food ingredients" has the meaning given in section 297A.67, subdivision 2.
Subd. 9.
Marketplace provider.
"Marketplace provider" has the meaning given in section 297A.66, subdivision 1, paragraph (d).
Subd. 12.
Retail delivery.
(a) "Retail delivery" means a delivery to a person located in Minnesota of the following items as part of a retail sale:
(1) tangible personal property that is subject to taxation under chapter 297A; and
(2) clothing, as defined under section 297A.67, subdivision 8, excluding cloth and disposable child and adult diapers.
(b) Retail delivery does not include pickup at the retailer's place of business, including curbside delivery.
Subd. 13.
Retail delivery fee.
"Retail delivery fee" means the fee imposed under section 168E.03 on retail deliveries.
Subd. 15.
Retailer.
"Retailer" means any person making sales, leases, or rental of personal property or services within or into the state of Minnesota. Retailer includes a:
(1) retailer maintaining a place of business in this state;
(2) marketplace provider maintaining a place of business in this state, as defined in section 297A.66, subdivision 1, paragraph (a);
(3) retailer not maintaining a place of business in this state; and
(4) marketplace provider not maintaining a place of business in this state, as defined in section 297A.66, subdivision 1, paragraph (b).
Subd. 16.
Tangible personal property.
"Tangible personal property" has the meaning given in section 297A.61, subdivision 10.
Subd. 17.
Threshold amount.
"Threshold amount" means $100, before application of the tax imposed under section 297A.62, subdivisions 1 and 1a, and any applicable local sales and use taxes, and excluding exempt items under section 168E.05.
168E.03 FEE IMPOSED.
Subdivision 1.
Retail delivery fee imposed.
(a) A fee is imposed on each retailer equal to 50 cents on each transaction that equals or exceeds the threshold amount involving retail delivery in Minnesota. The retailer may, but is not required to, collect the fee from the purchaser. If separately stated on the invoice, bill of sale, or similar document given to the purchaser, the fee is excluded from the sales price for purposes of the tax imposed under chapter 297A.
(b) If the retailer collects the fee from the purchaser:
(1) the retail delivery fee must be charged in addition to any other delivery fee; and
(2) the retailer must show the total of the retail delivery fee and other delivery fees as separate items and distinct from the sales price and any other taxes or fees imposed on the retail delivery on the purchaser's receipt, invoice, or other bill of sale. The receipt, invoice, or other bill of sale must state the retail delivery fee as "road improvement and food delivery fee."
Subd. 2.
Multiple items or shipments.
The fee imposed under subdivision 1 is imposed once per transaction regardless of the number of shipments necessary to deliver the items of tangible personal property purchased or of the number of items of tangible personal property purchased.
Subd. 3.
Returns and cancellations.
The fee imposed under subdivision 1 is nonrefundable if any or all items purchased are returned to a retailer or if the retailer provides a refund or credit in the amount equal to or less than the purchase price. The fee must be refunded to the purchaser if the retail delivery is canceled by the purchaser, retailer, or delivery provider.
168E.05 EXEMPTIONS.
Subdivision 1.
Transactions.
The following retail deliveries are exempt from the fee imposed by this chapter:
(1) a retail delivery to a purchaser who is exempt from tax under chapter 297A;
(2) a retail delivery on a motor vehicle for which a permit issued by the commissioner of transportation or a road authority is required under chapter 169 or 221 and the retailer has maintained books and records through reasonable and verifiable standards that the retail delivery was on a qualifying vehicle;
(3) a retail delivery resulting from a retail sale of food and food ingredients or prepared food;
(4) a retail delivery resulting from a retail sale by a food and beverage service establishment, regardless of whether the retail delivery is made by a third party other than the food and beverage service establishment; and
(5) a retail delivery resulting from a retail sale of drugs and medical devices, accessories and supplies, or baby products.
Subd. 2.
Small businesses.
(a) The fee imposed by this chapter and the requirements of this chapter do not apply to:
(1) a retailer that made retail sales totaling less than $1,000,000 in the previous calendar year; and
(2) a marketplace provider when facilitating the sale of a retailer that made retail sales totaling less than $100,000 in the previous calendar year through the marketplace provider.
(b) A retailer or marketplace provider must begin collecting and remitting the delivery fee to the commissioner on the first day of a calendar month occurring no later than 60 days after the retailer or marketplace provider exceeds a retail sales threshold in paragraph (a).
168E.07 COLLECTION AND ADMINISTRATION.
Subdivision 1.
Returns; payment of fees.
A retailer must report the fee on a return prescribed by the commissioner and must remit the fee with the return. The return and fee must be filed and paid using the filing cycle and due dates provided for taxes imposed under chapter 297A.
Subd. 2.
Collection and remittance.
A retailer that collects the fee from the purchaser must collect the fee in the same manner as the tax collected under chapter 297A. A retailer using a third-party entity to collect and remit the tax imposed under chapter 297A may elect to have that third-party entity collect and remit the fee imposed under this chapter.
Subd. 3.
Administration.
Unless specifically provided otherwise by this chapter, the audit, assessment, refund, penalty, interest, enforcement, collection remedies, appeal, and administrative provisions of chapters 270C and 289A, that are applicable to taxes imposed under chapter 297A, apply to the fee imposed under this chapter.
Subd. 4.
Interest on overpayments.
The commissioner must pay interest on an overpayment refunded or credited to the retailer from the date of payment of the fee until the date the refund is paid or credited. For purposes of this subdivision, the date of payment is the due date of the return or the date of actual payment of the fee, whichever is later.
168E.09 DEPOSIT OF PROCEEDS.
Subdivision 1.
Costs deducted.
The commissioner must retain an amount that does not exceed the total cost of collecting, administering, and enforcing the retail delivery fee and must deposit the amount in the revenue department service and recovery special revenue fund.
Subd. 2.
Deposits.
After deposits under subdivision 1, the commissioner must deposit the balance of proceeds from the retail delivery fee in the transportation advancement account under section 174.49.