SF 441

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; sales; exempting sales of 
  1.3             lottery tickets from sales tax; amending Minnesota 
  1.4             Statutes 1996, sections 297A.259; 349A.01, subdivision 
  1.5             7; and 349A.10, subdivision 7.  
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1996, section 297A.259, is 
  1.8   amended to read: 
  1.9      297A.259 [LOTTERY TICKETS; IN LIEU TAX EXEMPTION.] 
  1.10     Sales of state lottery tickets are exempt from the tax 
  1.11  imposed under section 297A.02.  The state lottery must on or 
  1.12  before the 20th day of each month transmit to the commissioner 
  1.13  of revenue an amount equal to the gross receipts from the sale 
  1.14  of lottery tickets for the previous month multiplied by the 
  1.15  combined tax rate under sections 297A.02, subdivision 1, and 
  1.16  297A.021, subdivision 1.  The resulting payment is in lieu of 
  1.17  the sales tax that otherwise would be imposed by this chapter.  
  1.18  The commissioner shall deposit the money transmitted as provided 
  1.19  by section 297A.44 and the money must be treated as other 
  1.20  proceeds of the sales tax.  Gross receipts for purposes of this 
  1.21  section mean the proceeds of the sale of tickets before 
  1.22  deduction of a commission or other compensation paid to the 
  1.23  vendor or retailer for selling tickets. 
  1.24     Sec. 2.  Minnesota Statutes 1996, section 349A.01, 
  1.25  subdivision 7, is amended to read: 
  2.1      Subd. 7.  [GROSS RECEIPTS.] "Gross receipts" means all 
  2.2   money received from the sale of lottery tickets less amounts 
  2.3   transmitted to the commissioner of revenue under section 
  2.4   297A.259. 
  2.5      Sec. 3.  Minnesota Statutes 1996, section 349A.10, 
  2.6   subdivision 7, is amended to read: 
  2.7      Subd. 7.  [TRANSFER OF CASH BALANCES.] (a) A lottery cash 
  2.8   flow account is created in the special revenue fund in the state 
  2.9   treasury.  At the end of each week the director shall deposit in 
  2.10  the lottery cash flow account from the lottery fund and the 
  2.11  lottery prize fund all amounts that the director determines are 
  2.12  not required for immediate use in the lottery fund or the 
  2.13  lottery prize fund.  The commissioner of finance shall credit to 
  2.14  the lottery cash flow account interest on all money deposited in 
  2.15  the lottery cash flow account under this subdivision.  
  2.16     (b) The director shall notify the commissioner of finance 
  2.17  whenever the director determines that money transferred under 
  2.18  paragraph (a) is required for the immediate use of the lottery 
  2.19  fund or the lottery prize fund.  Upon receiving the notification 
  2.20  the commissioner shall transfer the amount identified in the 
  2.21  notification.  Amounts necessary to make immediate payment for 
  2.22  expenses or prizes from the lottery fund or the prize fund are 
  2.23  appropriated from the lottery cash flow account to the director. 
  2.24     (c) The director shall notify the commissioner of finance 
  2.25  30 days after each month as to the amount of the net proceeds 
  2.26  that must be transferred under subdivision 5, and the director 
  2.27  shall notify the commissioner of finance 20 days after each 
  2.28  month as to the amount that must be transferred under section 
  2.29  297A.259, and as necessary the director shall notify the 
  2.30  commissioner of other amounts required by law to be transferred. 
  2.31     Sec. 4.  [EFFECTIVE DATE.] 
  2.32     Sections 1 to 3 are effective July 1, 1997.