SF 14

as introduced - 91st Legislature, 2020 7th Special Session (2020 - 2020) Posted on 12/15/2020 07:52am

A bill for an act
relating to taxation; sales and use; liquor gross receipts; income and corporate
franchise; delaying certain remittances; providing a grant for certain businesses
and a subtraction for certain income; requiring a report.

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

Section 1. new text begin TEMPORARY SUSPENSION OF CERTAIN SALES AND USE AND
LIQUOR GROSS RECEIPTS TAX REMITTANCES.
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new text begin (a) Notwithstanding Minnesota Statutes, section 289A.20, subdivision 4, paragraph (b),
for eligible taxes collected in November and December 2020 only, a qualifying taxpayer
subject to the remittance requirements under Minnesota Statutes, section 289A.20,
subdivision 4, may submit:
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new text begin (1) November 2020 tax liabilities by January 20, 2021; and
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new text begin (2) December 2020 tax liabilities by February 20, 2021.
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new text begin (b) For purposes of this section, the following definitions apply:
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new text begin (1) "eligible taxes" means:
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new text begin (i) sales and use taxes under Minnesota Statutes, chapter 297A;
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new text begin (ii) local sales and use taxes subject to the provisions of Minnesota Statutes, section
297A.99; and
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new text begin (iii) liquor gross receipts taxes under Minnesota Statutes, section 295.75;
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new text begin (2) "November 2020 tax liabilities" means the total amount of taxes listed in clause (1)
collected by a qualifying taxpayer in November 2020;
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new text begin (3) "December 2020 tax liabilities" means the total amount of taxes listed in clause (1)
collected by a qualifying taxpayer in December 2020; and
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new text begin (4) "qualifying taxpayer" means a business that is a place of public accommodation
closed to ingress, egress, use, and occupation by the public under the governor's Executive
Order 20-99, that is classified under one of the following codes in the North American
Industry Classification System:
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new text begin (i) 31212;
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new text begin (ii) 31213;
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new text begin (iii) 31214;
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new text begin (iv) 71394;
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new text begin (v) 71395;
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new text begin (vi) 7223;
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new text begin (vii) 7224; and
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new text begin (viii) 7225.
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new text begin (c) Notwithstanding Minnesota Statutes, sections 289A.55 and 289A.60, the commissioner
of revenue:
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new text begin (1) must not impose a late payment penalty under Minnesota Statutes, section 289A.60,
subdivision 1, or interest under Minnesota Statutes, section 289A.55, on the amount of taxes
due and paid under paragraph (a), clause (1), by January 20, 2021, and paragraph (a), clause
(2), by February 20, 2021; and
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new text begin (2) must only calculate any late payment penalty imposed under Minnesota Statutes,
section 289A.60, subdivision 1, or interest imposed under Minnesota Statutes, section
289A.55, on the amount of taxes due but not paid under paragraph (a), clause (1), by January
20, 2021, and paragraph (a), clause (2), by February 20, 2021.
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new text begin (d) This section does not limit the commissioner of revenue's authority to abate, reduce,
or refund any penalty or interest under Minnesota Statutes, section 270C.34, or any other
law.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment and
applies to remittances of taxes collected in November and December 2020.
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Sec. 2. new text begin COVID-19 ECONOMIC RELIEF GRANTS.
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new text begin Subdivision 1. new text end

new text begin Definitions. new text end

new text begin (a) For purposes of this section, the following definitions
apply.
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new text begin (b) "Qualified business" means a business that operates from a physical location in
Minnesota that:
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new text begin (1) is classified in one of the following business groups according to the North American
Industry Classification System:
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new text begin (i) 7211;
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new text begin (ii) 7212;
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new text begin (iii) 7213;
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new text begin (iv) 44;
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new text begin (v) 45;
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new text begin (vi) 81;
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new text begin (vii) 512131;
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new text begin (viii) 7111;
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new text begin (ix) 71211;
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new text begin (x) 71394;
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new text begin (xi) 71385;
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new text begin (xii) 31212;
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new text begin (xiii) 31213; and
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new text begin (xiv) 31214;
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new text begin (2) had taxable sales of more than $10,000 but less than $1,000,001 for the period
beginning after March 31, 2019, and before April 1, 2020; and
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new text begin (3) has a taxable sales differential of at least 30 percent.
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new text begin (c) "Taxable sales differential" means the decline, if any, in the amount of eligible taxes
collected in the period beginning after March 31, 2020, and before October 1, 2020, over
the amount of eligible taxes collected in the period beginning after March 31, 2019, and
before October 1, 2020.
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new text begin (d) "Eligible taxes" means:
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new text begin (1) sales taxes under Minnesota Statutes, chapter 297A;
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new text begin (2) local sales taxes subject to the provisions of Minnesota Statutes, section 297A.99;
and
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new text begin (3) liquor gross receipts taxes under Minnesota Statutes, section 295.75.
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new text begin (e) "Commissioner" means the commissioner of revenue.
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new text begin (f) "Covered expenses" means:
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new text begin (1) payroll costs;
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new text begin (2) costs related to the continuation of group health care benefits during periods of paid
sick, medical, or family leave and insurance premiums;
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new text begin (3) employee salaries, commissions, or similar compensation paid to employees whose
salary, commission, or similar compensation was less than $60,000 for the period beginning
after December 31, 2019, and before January 1, 2021;
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new text begin (4) payments of interest on any mortgage obligation, excluding any prepayment or
payment of principal on a mortgage obligation;
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new text begin (5) rent, including rent under a lease agreement;
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new text begin (6) utilities; and
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new text begin (7) interest on any other debt obligations incurred before the covered period.
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new text begin (g) "Covered period" means the period beginning January 1, 2021, and ending before
January 1, 2022.
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new text begin (h) "Greater Minnesota" has the meaning provided in Minnesota Statutes, section
116J.8738, subdivision 1, paragraph (e).
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new text begin (i) "Minority-owned business" has the meaning provided in Minnesota Statutes, section
116J.8737, subdivision 1, paragraph (l).
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new text begin (j) "Women-owned business" has the meaning provided in Minnesota Statutes, section
116J.8737, subdivision 1, paragraph (n).
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new text begin (k) "Veteran-owned business" has the meaning provided in Minnesota Statutes, section
116J.8737, subdivision 1, paragraph (p).
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new text begin Subd. 2. new text end

new text begin Grant authorized; calculation of grant. new text end

new text begin (a) A qualified business is allowed
a grant as provided in this section. The commissioner shall make a grant to a qualified
business by ...... The commissioner must not allocate more than $....... in grant certifications
to all qualified businesses. Notwithstanding paragraphs (b) and (c), a grant to a qualified
business must not exceed $.......
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new text begin (b) For a qualified business with a taxable sales differential of at least 50 percent, the
grant equals ... percent of the taxable sales differential.
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new text begin (c) For a qualified business with a taxable sales differential of at least 30 percent but
less than 50 percent, the grant equals ... percent of the taxable sales differential.
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new text begin Subd. 3. new text end

new text begin Partnerships; multiple owners. new text end

new text begin Grants issued to a partnership, a limited
liability company taxed as a partnership, an S corporation, or multiple owners of property
are passed through to the partners, members, shareholders, or owners, respectively, pro rata
to each partner, member, shareholder, or owner based on their share of the entity's assets
or as specially allocated in their organizational documents or any other executed agreement,
as of the last day of the taxable year.
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new text begin Subd. 4. new text end

new text begin Report to legislature. new text end

new text begin By ....... 2021, the commissioner must report to the chairs
and ranking minority members of the legislative committees having jurisdiction over taxes
and economic development in the senate and the house of representatives on the amount of
grants awarded each month to a qualifying business, including:
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new text begin (1) the number of grants awarded, including the number of maximum grants awarded
under subdivision 2, paragraph (a);
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new text begin (2) the average amount of grant awarded per qualified business;
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new text begin (3) the number and average amount of grants awarded to qualified businesses in greater
Minnesota; and
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new text begin (4) the number and average amount of grants awarded to qualified businesses that are:
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new text begin (i) women-owned;
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new text begin (ii) minority-owned; or
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new text begin (iii) veteran-owned.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective the day following final enactment.
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Sec. 3. new text begin COVID-19 ECONOMIC RELIEF GRANTS; SUBTRACTION.
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new text begin The amount of the grant received under section 2 is a subtraction for the purposes of
Minnesota Statutes, section 290.0132, subdivision 1, or 290.0134, subdivision 1.
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new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxable years beginning after December
31, 2020, and before January 1, 2022.
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