SF 321

as introduced - 80th Legislature (1997 - 1998) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; abolishing accelerated June 
  1.3             liability for certain sales and excise taxes; amending 
  1.4             Minnesota Statutes 1996, sections 289A.18, subdivision 
  1.5             4; 289A.20, subdivision 4; 297.07, subdivision 1; 
  1.6             297.23, subdivision 4; 297.35, subdivision 1; 297C.03, 
  1.7             subdivision 1; and 297C.04; repealing Minnesota 
  1.8             Statutes 1996, sections 297.07, subdivision 4; 297.35, 
  1.9             subdivision 5; and 297C.05, subdivision 2. 
  1.10  BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.11     Section 1.  Minnesota Statutes 1996, section 289A.18, 
  1.12  subdivision 4, is amended to read: 
  1.13     Subd. 4.  [SALES AND USE TAX RETURNS.] (a) Sales and use 
  1.14  tax returns must be filed on or before the 20th day of the month 
  1.15  following the close of the preceding reporting period, except 
  1.16  that annual use tax returns provided for under section 289A.11, 
  1.17  subdivision 1, must be filed by April 15 following the close of 
  1.18  the calendar year, in the case of individuals.  Annual use tax 
  1.19  returns of businesses, including sole proprietorships, and 
  1.20  annual sales tax returns must be filed by February 5 following 
  1.21  the close of the calendar year.  
  1.22     (b) Except for the return for the June reporting period, 
  1.23  which is due on the following August 25, Returns filed by 
  1.24  retailers required to remit liabilities by means of funds 
  1.25  transfer under section 289A.20, subdivision 4, paragraph (d), 
  1.26  are due on or before the 25th day of the month following the 
  1.27  close of the preceding reporting period.  
  2.1      (c) If a retailer has an average sales and use tax 
  2.2   liability, including local sales and use taxes administered by 
  2.3   the commissioner, equal to or less than $500 per month in any 
  2.4   quarter of a calendar year, and has substantially complied with 
  2.5   the tax laws during the preceding four calendar quarters, the 
  2.6   retailer may request authorization to file and pay the taxes 
  2.7   quarterly in subsequent calendar quarters.  The authorization 
  2.8   remains in effect during the period in which the retailer's 
  2.9   quarterly returns reflect sales and use tax liabilities of less 
  2.10  than $1,500 and there is continued compliance with state tax 
  2.11  laws. 
  2.12     (d) If a retailer has an average sales and use tax 
  2.13  liability, including local sales and use taxes administered by 
  2.14  the commissioner, equal to or less than $100 per month during a 
  2.15  calendar year, and has substantially complied with the tax laws 
  2.16  during that period, the retailer may request authorization to 
  2.17  file and pay the taxes annually in subsequent years.  The 
  2.18  authorization remains in effect during the period in which the 
  2.19  retailer's annual returns reflect sales and use tax liabilities 
  2.20  of less than $1,200 and there is continued compliance with state 
  2.21  tax laws. 
  2.22     (e) The commissioner may also grant quarterly or annual 
  2.23  filing and payment authorizations to retailers if the 
  2.24  commissioner concludes that the retailers' future tax 
  2.25  liabilities will be less than the monthly totals identified in 
  2.26  paragraphs (c) and (d).  An authorization granted under this 
  2.27  paragraph is subject to the same conditions as an authorization 
  2.28  granted under paragraphs (c) and (d). 
  2.29     Sec. 2.  Minnesota Statutes 1996, section 289A.20, 
  2.30  subdivision 4, is amended to read: 
  2.31     Subd. 4.  [SALES AND USE TAX.] (a) The taxes imposed by 
  2.32  chapter 297A are due and payable to the commissioner monthly on 
  2.33  or before the 20th day of the month following the month in which 
  2.34  the taxable event occurred or following another reporting period 
  2.35  as the commissioner prescribes, except that use taxes due on an 
  2.36  annual use tax return as provided under section 289A.11, 
  3.1   subdivision 1, are payable by April 15 following the close of 
  3.2   the calendar year. 
  3.3      (b) A vendor having a liability of $120,000 or more during 
  3.4   a fiscal year ending June 30 must remit the June liability for 
  3.5   the next year in the following manner: 
  3.6      (1) Two business days before June 30 of the year, the 
  3.7   vendor must remit 75 percent of the estimated June liability to 
  3.8   the commissioner.  
  3.9      (2) On or before August 14 of the year, the vendor must pay 
  3.10  any additional amount of tax not remitted in June. 
  3.11     (c) (b) A vendor having a liability of $120,000 or more 
  3.12  during a fiscal year ending June 30 must remit all liabilities 
  3.13  in the subsequent calendar year by means of a funds transfer as 
  3.14  defined in section 336.4A-104, paragraph (a).  The funds 
  3.15  transfer payment date, as defined in section 336.4A-401, must be 
  3.16  on or before the 14th day of the month following the month in 
  3.17  which the taxable event occurred, except for 75 percent of the 
  3.18  estimated June liability, which is due two business days before 
  3.19  June 30.  The remaining amount of the June liability is due on 
  3.20  August 14.  If the date the tax is due is not a funds transfer 
  3.21  business day, as defined in section 336.4A-105, paragraph (a), 
  3.22  clause (4), the payment date must be on or before the funds 
  3.23  transfer business day next following the date the tax is due. 
  3.24     (d) (c) If the vendor required to remit by electronic funds 
  3.25  transfer as provided in paragraph (c) (b) is unable due to 
  3.26  reasonable cause to determine the actual sales and use tax due 
  3.27  on or before the due date for payment, the vendor may remit an 
  3.28  estimate of the tax owed using one of the following options: 
  3.29     (1) 100 percent of the tax reported on the previous month's 
  3.30  sales and use tax return; 
  3.31     (2) 100 percent of the tax reported on the sales and use 
  3.32  tax return for the same month in the previous calendar year; or 
  3.33     (3) 95 percent of the actual tax due. 
  3.34     Any additional amount of tax that is not remitted on or 
  3.35  before the due date for payment, must be remitted with the 
  3.36  return.  If a vendor fails to remit the actual liability or does 
  4.1   not remit using one of the estimate options by the due date for 
  4.2   payment, the vendor must remit actual liability as provided in 
  4.3   paragraph (c) (b) in all subsequent periods.  This paragraph 
  4.4   does not apply to the June sales and use tax liability. 
  4.5      Sec. 3.  Minnesota Statutes 1996, section 297.07, 
  4.6   subdivision 1, is amended to read: 
  4.7      Subdivision 1.  [MONTHLY RETURN FILED WITH COMMISSIONER.] 
  4.8   On or before the 18th day of each calendar month every 
  4.9   distributor with a place of business in this state shall file a 
  4.10  return with the commissioner showing the quantity of cigarettes 
  4.11  manufactured or brought in from without the state or purchased 
  4.12  during the preceding calendar month and the quantity of 
  4.13  cigarettes sold or otherwise disposed of in this state and 
  4.14  outside this state during that month.  Every licensed 
  4.15  distributor outside this state shall in like manner file a 
  4.16  return showing the quantity of cigarettes shipped or transported 
  4.17  into this state during the preceding calendar month.  Returns 
  4.18  shall be made upon forms furnished and prescribed by the 
  4.19  commissioner and shall contain such other information as the 
  4.20  commissioner may require.  The return shall be accompanied by a 
  4.21  remittance for the full unpaid tax liability shown by it.  The 
  4.22  return for the May liability and 75 percent of the estimated 
  4.23  June liability is due on the date payment of the tax is due. 
  4.24     Sec. 4.  Minnesota Statutes 1996, section 297.23, 
  4.25  subdivision 4, is amended to read: 
  4.26     Subd. 4.  All of the provisions of section 297.07, 
  4.27  subdivisions 2, 3, 4 and 5, relating to corrections of returns, 
  4.28  deficiency assessments, protests thereto, hearings thereon, 
  4.29  interest and penalties, and collections of taxes, shall be 
  4.30  applicable to consumers under the act in like manner as though 
  4.31  set out in full herein.  
  4.32     Sec. 5.  Minnesota Statutes 1996, section 297.35, 
  4.33  subdivision 1, is amended to read: 
  4.34     Subdivision 1.  On or before the 18th day of each calendar 
  4.35  month every distributor with a place of business in this state 
  4.36  shall file a return with the commissioner showing the quantity 
  5.1   and wholesale sales price of each tobacco product (1) brought, 
  5.2   or caused to be brought, into this state for sale; and (2) made, 
  5.3   manufactured, or fabricated in this state for sale in this 
  5.4   state, during the preceding calendar month.  Every licensed 
  5.5   distributor outside this state shall in like manner file a 
  5.6   return showing the quantity and wholesale sales price of each 
  5.7   tobacco product shipped or transported to retailers in this 
  5.8   state to be sold by those retailers, during the preceding 
  5.9   calendar month.  Returns shall be made upon forms furnished and 
  5.10  prescribed by the commissioner and shall contain such other 
  5.11  information as the commissioner may require.  Each return shall 
  5.12  be accompanied by a remittance for the full tax liability shown 
  5.13  therein, less 1.5 percent of such liability as compensation to 
  5.14  reimburse the distributor for expenses incurred in the 
  5.15  administration of sections 297.31 to 297.39.  The return for the 
  5.16  May liability and 75 percent of the estimated June liability is 
  5.17  due on the date payment of the tax is due. 
  5.18     A distributor having a liability of $120,000 or more during 
  5.19  a fiscal year ending June 30 must remit all liabilities in the 
  5.20  subsequent calendar year by means of a funds transfer as defined 
  5.21  in section 336.4A-104, paragraph (a).  The funds transfer 
  5.22  payment date, as defined in section 336.4A-401, must be on or 
  5.23  before the date the tax is due.  If the date the tax is due is 
  5.24  not a funds transfer business day, as defined in section 
  5.25  336.4A-105, paragraph (a), clause (4), the payment date must be 
  5.26  on or before the funds transfer business day next following the 
  5.27  date the tax is due. 
  5.28     Sec. 6.  Minnesota Statutes 1996, section 297C.03, 
  5.29  subdivision 1, is amended to read: 
  5.30     Subdivision 1.  [MANNER AND TIME OF PAYMENT; FAILURE TO 
  5.31  PAY.] The tax on wines and distilled spirits on which the excise 
  5.32  tax has not been previously paid must be paid to the 
  5.33  commissioner by persons liable for the tax on or before the 18th 
  5.34  day of the month following the month in which the first sale is 
  5.35  made in this state by a licensed manufacturer or wholesaler.  
  5.36  Every person liable for the tax on wines or distilled spirits 
  6.1   imposed by section 297C.02 must file with the commissioner on or 
  6.2   before the 18th day of the month following first sale in this 
  6.3   state by a licensed manufacturer or wholesaler a return in the 
  6.4   form prescribed by the commissioner, and must keep records and 
  6.5   render reports required by the commissioner.  The commissioner 
  6.6   may certify to the commissioner of public safety any failure to 
  6.7   pay taxes when due as a violation of a statute relating to the 
  6.8   sale of intoxicating liquor for possible revocation or 
  6.9   suspension of license.  The return for the May liability and 75 
  6.10  percent of the estimated June liability is due on the date 
  6.11  payment of the tax is due.  
  6.12     A person liable for an excise tax of $120,000 or more 
  6.13  during a fiscal year ending June 30 must remit all excise tax 
  6.14  liabilities in the subsequent calendar year by means of a funds 
  6.15  transfer as defined in section 336.4A-104, paragraph (a).  The 
  6.16  funds transfer payment date, as defined in section 336.4A-401, 
  6.17  must be on or before the date the excise tax is due.  If the 
  6.18  date the excise tax is due is not a funds transfer business day, 
  6.19  as defined in section 336.4A-105, paragraph (a), clause (4), the 
  6.20  payment date must be on or before the funds transfer business 
  6.21  day next following the date the excise tax is due. 
  6.22     Sec. 7.  Minnesota Statutes 1996, section 297C.04, is 
  6.23  amended to read: 
  6.24     297C.04 [PAYMENT OF TAX; MALT LIQUOR.] 
  6.25     The commissioner may by rule provide a reporting method for 
  6.26  paying and collecting the excise tax on fermented malt 
  6.27  beverages.  The tax is imposed upon the first sale or 
  6.28  importation made in this state by a licensed brewer or 
  6.29  importer.  The rules must require reports to be filed with and 
  6.30  the excise tax to be paid to the commissioner on or before the 
  6.31  18th day of the month following the month in which the 
  6.32  importation into or the first sale is made in this state, 
  6.33  whichever first occurs.  The rules must also require payments in 
  6.34  June of 1987 and subsequent years according to the provisions of 
  6.35  section 297C.05, subdivision 2.  
  6.36     A distributor who has title to or possession of fermented 
  7.1   malt beverages upon which the excise tax has not been paid and 
  7.2   who knows that the tax has not been paid, shall file a return 
  7.3   with the commissioner on or before the 18th day of the month 
  7.4   following the month in which the distributor obtains title or 
  7.5   possession of the fermented malt beverages.  The return must be 
  7.6   made on a form furnished and prescribed by the commissioner, and 
  7.7   must contain all information that the commissioner requires.  
  7.8   The return must be accompanied by a remittance for the full 
  7.9   unpaid liability shown on it.  The return for the May liability 
  7.10  and 75 percent of the estimated June liability is due on the 
  7.11  date payment of the tax is due. 
  7.12     A licensed brewer, importer, or distributor having an 
  7.13  excise tax liability of $120,000 or more during a fiscal year 
  7.14  ending June 30 must remit all excise tax liabilities in the 
  7.15  subsequent calendar year by means of a funds transfer as defined 
  7.16  in section 336.4A-104, paragraph (a).  The funds transfer 
  7.17  payment date, as defined in section 336.4A-401, must be on or 
  7.18  before the date the excise tax is due.  If the date the excise 
  7.19  tax is due is not a funds transfer business day, as defined in 
  7.20  section 336.4A-105, paragraph (a), clause (4), the payment date 
  7.21  must be on or before the funds transfer business day next 
  7.22  following the date the excise tax is due. 
  7.23     Sec. 8.  [REPEALER.] 
  7.24     Minnesota Statutes 1996, sections 297.07, subdivision 4; 
  7.25  297.35, subdivision 5; and 297C.05, subdivision 2, are repealed. 
  7.26     Sec. 9.  [EFFECTIVE DATE.] 
  7.27     Sections 1 to 8 are effective January 1, 1998.