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SF 75

1st Engrossment - 88th Legislature (2013 - 2014) Posted on 03/20/2014 11:33am

KEY: stricken = removed, old language.
underscored = added, new language.

Current Version - 1st Engrossment

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A bill for an act
relating to taxation; modifying remittance schedule for certain vendors;
amending Minnesota Statutes 2012, section 289A.20, subdivision 4; repealing
Minnesota Statutes 2012, section 289A.60, subdivision 31.

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

Section 1.

Minnesota Statutes 2012, section 289A.20, subdivision 4, is amended to read:


Subd. 4.

Sales and use tax.

(a) The taxes imposed by chapter 297A are due and
payable to the commissioner monthly on or before the 20th day of the month following
the month in which the taxable event occurred, or following another reporting period
as the commissioner prescribes or as allowed under section 289A.18, subdivision 4,
paragraph (f) or (g), except thatdeleted text begin:
deleted text end

deleted text begin (1)deleted text end use taxes due on an annual use tax return as provided under section 289A.11,
subdivision 1
, are payable by April 15 following the close of the calendar yeardeleted text begin; anddeleted text endnew text begin.
new text end

deleted text begin (2) except as provided in paragraph (f), for a vendor having a liability of $120,000
or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the taxes
imposed by chapter 297A, except as provided in paragraph (b), are due and payable to the
commissioner monthly in the following manner:
deleted text end

deleted text begin (i) On or before the 14th day of the month following the month in which the taxable
event occurred, the vendor must remit to the commissioner 90 percent of the estimated
liability for the month in which the taxable event occurred.
deleted text end

deleted text begin (ii) On or before the 20th day of the month in which the taxable event occurs, the
vendor must remit to the commissioner a prepayment for the month in which the taxable
event occurs equal to 67 percent of the liability for the previous month.
deleted text end

deleted text begin (iii) On or before the 20th day of the month following the month in which the taxable
event occurred, the vendor must pay any additional amount of tax not previously remitted
under either item (i) or (ii ) or, if the payment made under item (i) or (ii) was greater than
the vendor's liability for the month in which the taxable event occurred, the vendor may
take a credit against the next month's liability in a manner prescribed by the commissioner.
deleted text end

deleted text begin (iv) Once the vendor first pays under either item (i) or (ii), the vendor is required to
continue to make payments in the same manner, as long as the vendor continues having a
liability of $120,000 or more during the most recent fiscal year ending June 30.
deleted text end

deleted text begin (v) Notwithstanding items (i), (ii), and (iv), if a vendor fails to make the required
payment in the first month that the vendor is required to make a payment under either item
(i) or (ii), then the vendor is deemed to have elected to pay under item (ii) and must make
subsequent monthly payments in the manner provided in item (ii).
deleted text end

deleted text begin (vi) For vendors making an accelerated payment under item (ii), for the first month
that the vendor is required to make the accelerated payment, on the 20th of that month, the
vendor will pay 100 percent of the liability for the previous month and a prepayment for
the first month equal to 67 percent of the liability for the previous month.
deleted text end

(b) deleted text beginNotwithstanding paragraph (a),deleted text end A vendor having a liability of $120,000 or more
during a fiscal year ending June 30 must remit the June liability for the next year in the
following manner:

(1) Two business days before June 30 of the year, the vendor must remit 90 percent
of the estimated June liability to the commissioner.

(2) On or before August 20 of the year, the vendor must pay any additional amount
of tax not remitted in June.

(c) A vendor having a liability of:

(1) $10,000 or more, but less than $120,000 during a fiscal year ending June 30,
2009, and fiscal years thereafter, must remit by electronic means all liabilities on returns
due for periods beginning in the subsequent calendar year on or before the 20th day of
the month following the month in which the taxable event occurred, or on or before the
20th day of the month following the month in which the sale is reported under section
289A.18, subdivision 4; or

(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years
thereafter, must remit by electronic means all liabilities in the manner provided in
paragraph (a)deleted text begin, clause (2),deleted text end on returns due for periods beginning in the subsequent calendar
year, except for 90 percent of the estimated June liability, which is due two business days
before June 30. The remaining amount of the June liability is due on August 20.

(d) Notwithstanding paragraph (b) or (c), a person prohibited by the person's
religious beliefs from paying electronically shall be allowed to remit the payment by mail.
The filer must notify the commissioner of revenue of the intent to pay by mail before
doing so on a form prescribed by the commissioner. No extra fee may be charged to a
person making payment by mail under this paragraph. The payment must be postmarked
at least two business days before the due date for making the payment in order to be
considered paid on a timely basis.

deleted text begin (e) Whenever the liability is $120,000 or more separately for: (1) the tax imposed
under chapter 297A; (2) a fee that is to be reported on the same return as and paid with the
chapter 297A taxes; or (3) any other tax that is to be reported on the same return as and
paid with the chapter 297A taxes, then the payment of all the liabilities on the return must
be accelerated as provided in this subdivision.
deleted text end

deleted text begin (f) At the start of the first calendar quarter at least 90 days after the cash flow account
established in section 16A.152, subdivision 1, and the budget reserve account established in
section 16A.152, subdivision 1a, reach the amounts listed in section 16A.152, subdivision
2
, paragraph (a), the remittance of the accelerated payments required under paragraph (a),
clause (2), must be suspended. The commissioner of management and budget shall notify
the commissioner of revenue when the accounts have reached the required amounts.
Beginning with the suspension of paragraph (a), clause (2), for a vendor with a liability of
$120,000 or more during a fiscal year ending June 30, 2009, and fiscal years thereafter, the
taxes imposed by chapter 297A are due and payable to the commissioner on the 20th day
of the month following the month in which the taxable event occurred. Payments of tax
liabilities for taxable events occurring in June under paragraph (b) are not changed.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes due and payable after
July 1, 2013.
new text end

Sec. 2. new text begin REPEALER.
new text end

new text begin Minnesota Statutes 2012, section 289A.60, subdivision 31, new text end new text begin is repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for taxes due and payable after
July 1, 2013.
new text end