Minnesota Legislature
HF 3322
as introduced - 86th Legislature (2009 - 2010) Posted on 03/03/2010 04:01pm
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A bill for an act
relating to taxation; imposing an excise tax on disposable bags; amending
Minnesota Statutes 2008, sections 289A.01; 289A.02, subdivision 5; 289A.12,
by adding a subdivision; 289A.18, by adding a subdivision; 289A.19, by adding
a subdivision; 289A.20, by adding a subdivision; 289A.56, subdivision 3;
Minnesota Statutes 2009 Supplement, section 270C.56, subdivision 1; proposing
coding for new law as Minnesota Statutes, chapter 297J.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2009 Supplement, section 270C.56, subdivision 1, is
amended to read:
Subdivision 1.
Liability imposed.
A person who, either singly or jointly with
others, has the control of, supervision of, or responsibility for filing returns or reports,
paying taxes, or collecting or withholding and remitting taxes and who fails to do so, or a
person who is liable under any other law, is liable for the payment of taxes arising under
chapters 295, 296A, 297A, 297F, deleted text begin anddeleted text end 297G, new text begin and 297J, new text end or sections 256.9658, 290.92, and
297E.02, and the applicable penalties and interest on those taxes.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to disposable bags transferred after September 30, 2010.
new text end
Sec. 2.
Minnesota Statutes 2008, section 289A.01, is amended to read:
289A.01 APPLICATION OF CHAPTER.
This chapter applies to laws administered by the commissioner under chapters 290,
290A, 291, deleted text begin anddeleted text end 297A, new text begin and 297J, new text end and sections 298.01 and 298.015.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to disposable bags transferred after September 30, 2010.
new text end
Sec. 3.
Minnesota Statutes 2008, section 289A.02, subdivision 5, is amended to read:
Subd. 5.
Other words.
Unless specifically defined in this chapter, or unless the
context clearly indicates otherwise, the words used in this chapter have the same meanings
as they are defined in chapters 290, 290A, 291, deleted text begin anddeleted text end 297Anew text begin , and 297Jnew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to disposable bags transferred after September 30, 2010.
new text end
Sec. 4.
Minnesota Statutes 2008, section 289A.12, is amended by adding a subdivision
to read:
new text begin Subd. 4a. new text end
new text begin Disposable bag tax returns. new text end
new text begin
For taxes imposed under chapter 297J, a
return for the preceding taxable period must be filed with the commissioner in the form
the commissioner prescribes. The return must be verified by a written declaration that
it is made subject to criminal penalties for filing a false return and must also contain a
confession of judgment for the amount of the tax shown due to the extent it is not timely
paid.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to disposable bags transferred after September 30, 2010.
new text end
Sec. 5.
Minnesota Statutes 2008, section 289A.18, is amended by adding a subdivision
to read:
new text begin Subd. 6. new text end
new text begin Disposable bag tax returns. new text end
new text begin
A return under section 289A.12, subdivision
4a, is due on or before the 20th day of the month following the month in which the tax
liability is incurred.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to disposable bags transferred after September 30, 2010.
new text end
Sec. 6.
Minnesota Statutes 2008, section 289A.19, is amended by adding a subdivision
to read:
new text begin Subd. 8. new text end
new text begin Disposable bag tax returns. new text end
new text begin
The commissioner may extend the time for
filing a disposable bag tax return by up to 60 days for good cause.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to disposable bags transferred after September 30, 2010.
new text end
Sec. 7.
Minnesota Statutes 2008, section 289A.20, is amended by adding a subdivision
to read:
new text begin Subd. 6. new text end
new text begin Disposable bag tax. new text end
new text begin
Disposable bag taxes are due on or before the 20th
day of the month following the month in which the tax liability is to be incurred.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to disposable bags transferred after September 30, 2010.
new text end
Sec. 8.
Minnesota Statutes 2008, section 289A.56, subdivision 3, is amended to read:
Subd. 3.
Withholding tax, entertainer withholding tax, withholding from
payments to out-of-state contractors, estate tax, new text begin disposable bag tax, new text end and sales tax
overpayments.
When a refund is due for overpayments of withholding tax, entertainer
withholding tax, new text begin disposable bag tax, new text end or withholding from payments to out-of-state
contractors, interest is computed from the date of payment to the date the refund is paid or
credited. For purposes of this subdivision, the date of payment is the later of the date the
tax was finally due or was paid.
For the purposes of computing interest on estate tax refunds, interest is paid from
the later of the date of overpayment, the date the estate tax return is due, or the date the
original estate tax return is filed to the date the refund is paid.
For purposes of computing interest on sales and use tax refunds, interest is paid from
the date of payment to the date the refund is paid or credited, if the refund claim includes a
detailed schedule reflecting the tax periods covered in the claim. If the refund claim
submitted does not include a detailed schedule reflecting the tax periods covered in the
claim, interest is computed from the date the claim was filed.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to disposable bags transferred after September 30, 2010.
new text end
Sec. 9.
new text begin
[297J.01] DEFINITIONS.
new text end
new text begin Subdivision 1. new text end
new text begin Scope. new text end
new text begin
For purposes of this chapter, the following terms have the
meanings given.
new text end
new text begin Subd. 2. new text end
new text begin Consumer. new text end
new text begin
"Consumer" means any person who purchases from a retailer a
product that is placed in a disposable carryout bag at the time of sale.
new text end
new text begin Subd. 3. new text end
new text begin Retailer. new text end
new text begin
"Retailer" means any person making sales of products who
provides or sells disposable carryout bags to a consumer at the point of sale to carry
purchases.
new text end
new text begin Subd. 4. new text end
new text begin Disposable carryout bag. new text end
new text begin
"Disposable carryout bag" means a bag of any
material, commonly plastic or kraft paper, which is provided to a consumer at the point of
sale to carry purchases. Disposable carryout bag does not include:
new text end
new text begin
(1) a reusable bag as defined in subdivision 5;
new text end
new text begin
(2) bags used by consumers inside stores to package bulk items such as fruit,
vegetables, nuts, candy, grains, or small hardware items, such as nails and bolts;
new text end
new text begin
(3) bags used to contain or wrap frozen foods; meat or fish, whether prepackaged or
not; or flowers or potted plants or other items where dampness may be a problem;
new text end
new text begin
(4) bags used to protect prepared foods or bakery goods;
new text end
new text begin
(5) bags provided by pharmacists to contain prescription drugs;
new text end
new text begin
(6) newspaper bags, door-hanger bags, laundry or dry cleaning bags; or
new text end
new text begin
(7) bags sold in packages containing multiple bags intended for use as garbage, pet
waste, or yard waste bags.
new text end
new text begin Subd. 5. new text end
new text begin Reusable bag. new text end
new text begin
"Reusable bag" means a durable plastic bag that is at least
2.25 mils thick, has handles, and is specifically designed and manufactured for multiple
reuse, or a bag that is made of cloth or other machine-washable fabric and has handles.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to disposable bags transferred after September 30, 2010.
new text end
Sec. 10.
new text begin
[297J.02] DISPOSABLE BAG TAX.
new text end
new text begin Subdivision 1. new text end
new text begin Imposition. new text end
new text begin
A tax is imposed on the sale or transfer of disposable
carryout bags by a retailer to a consumer equal to five cents per bag. The tax must be paid
by the consumer at the time of purchase and retailers may not pay the tax on behalf of
consumers. All retailers must indicate on the consumer transaction receipt the number of
disposable carryout bags provided and the total amount of tax imposed.
new text end
new text begin Subd. 2. new text end
new text begin Distribution. new text end
new text begin
(a) From each five-cent tax collected, one cent remains with
the retailer. However, a retailer that chooses to offer a carryout bag credit program to its
customers may retain an additional one cent from each five cents collected. For a retailer to
retain the additional one cent from the five-cent tax, the carryout bag credit program must:
new text end
new text begin
(1) credit the consumer a minimum of five cents for each carryout bag provided
by the consumer for packaging their purchase, regardless of whether the bag is paper,
plastic, or reusable;
new text end
new text begin
(2) be prominently advertised at each checkout register; and
new text end
new text begin
(3) reflect the total credit amount on the consumer transaction receipt.
new text end
new text begin
(b) The fees retained by the establishment under this section must not be classified
as revenue and are not subject to tax.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to disposable bags transferred after September 30, 2010.
new text end
Sec. 11.
new text begin
[297J.03] TAX PERMIT.
new text end
new text begin Subdivision 1. new text end
new text begin Permit required. new text end
new text begin
Every retailer must apply to the commissioner, on
a form prescribed by the commissioner, for a disposable bag tax identification number and
disposable bag tax permit. A permit is not assignable and is valid only for the retailer in
whose name it is issued.
new text end
new text begin Subd. 2. new text end
new text begin Inclusion on invoice. new text end
new text begin
The retailer's disposable bag tax identification
number must be included on every invoice where the disposable bag tax is collected.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to disposable bags transferred after September 30, 2010.
new text end