SF 795

as introduced - 81st Legislature (1999 - 2000) Posted on 12/15/2009 12:00am

  1.1                          A bill for an act 
  1.2             relating to taxation; providing for the filing of 
  1.3             sales tax returns and remittance of tax by material 
  1.4             suppliers; amending Minnesota Statutes 1998, sections 
  1.5             289A.18, subdivision 4; and 289A.20, subdivision 4. 
  1.6   BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: 
  1.7      Section 1.  Minnesota Statutes 1998, section 289A.18, 
  1.8   subdivision 4, is amended to read: 
  1.9      Subd. 4.  [SALES AND USE TAX RETURNS.] (a) Sales and use 
  1.10  tax returns must be filed on or before the 20th day of the month 
  1.11  following the close of the preceding reporting period, except 
  1.12  that annual use tax returns provided for under section 289A.11, 
  1.13  subdivision 1, must be filed by April 15 following the close of 
  1.14  the calendar year, in the case of individuals.  Annual use tax 
  1.15  returns of businesses, including sole proprietorships, and 
  1.16  annual sales tax returns must be filed by February 5 following 
  1.17  the close of the calendar year.  
  1.18     (b) Except for the return for the June reporting period, 
  1.19  which is due on the following August 25, returns filed by 
  1.20  retailers required to remit liabilities by means of funds 
  1.21  transfer under section 289A.20, subdivision 4, paragraph (d), 
  1.22  are due on or before the 25th day of the month following the 
  1.23  close of the preceding reporting period.  
  1.24     (c) If a retailer has an average sales and use tax 
  1.25  liability, including local sales and use taxes administered by 
  2.1   the commissioner, equal to or less than $500 per month in any 
  2.2   quarter of a calendar year, and has substantially complied with 
  2.3   the tax laws during the preceding four calendar quarters, the 
  2.4   retailer may request authorization to file and pay the taxes 
  2.5   quarterly in subsequent calendar quarters.  The authorization 
  2.6   remains in effect during the period in which the retailer's 
  2.7   quarterly returns reflect sales and use tax liabilities of less 
  2.8   than $1,500 and there is continued compliance with state tax 
  2.9   laws. 
  2.10     (d) If a retailer has an average sales and use tax 
  2.11  liability, including local sales and use taxes administered by 
  2.12  the commissioner, equal to or less than $100 per month during a 
  2.13  calendar year, and has substantially complied with the tax laws 
  2.14  during that period, the retailer may request authorization to 
  2.15  file and pay the taxes annually in subsequent years.  The 
  2.16  authorization remains in effect during the period in which the 
  2.17  retailer's annual returns reflect sales and use tax liabilities 
  2.18  of less than $1,200 and there is continued compliance with state 
  2.19  tax laws. 
  2.20     (e) The commissioner may also grant quarterly or annual 
  2.21  filing and payment authorizations to retailers if the 
  2.22  commissioner concludes that the retailers' future tax 
  2.23  liabilities will be less than the monthly totals identified in 
  2.24  paragraphs (c) and (d).  An authorization granted under this 
  2.25  paragraph is subject to the same conditions as an authorization 
  2.26  granted under paragraphs (c) and (d). 
  2.27     (f) A taxpayer who is a materials supplier may, at the 
  2.28  option of the taxpayer, include the amount of all taxable sales 
  2.29  and gross receipts from materials furnished to an owner, 
  2.30  contractor, subcontractor, repairer, or consumer on a credit 
  2.31  sale basis for the purpose of making an improvement to real 
  2.32  property on the taxpayer's return in the first return due in the 
  2.33  next quarter following the date on which the materials supplier 
  2.34  made the credit sale to the owner, contractor, subcontractor, 
  2.35  repairer, or consumer.  Notwithstanding the provisions of this 
  2.36  subdivision, a materials supplier may at the option of the 
  3.1   taxpayer file quarterly returns for a credit sale only as 
  3.2   determined by the commissioner.  As used in this paragraph, 
  3.3   "credit sale" means an extension of credit for the sale of 
  3.4   taxable goods by a seller other than a credit card sale.  As 
  3.5   used in this paragraph, "materials supplier" means a person who 
  3.6   provides materials for the improvement of real property; who has 
  3.7   registered with and has demonstrated to the commissioner that 
  3.8   the person is primarily engaged in the sale of lumber and 
  3.9   building materials-related products to owners, contractors, 
  3.10  subcontractors, repairers, or consumers; and who is authorized 
  3.11  to file a mechanics lien upon real property and improvements 
  3.12  under chapter 514. 
  3.13     Sec. 2.  Minnesota Statutes 1998, section 289A.20, 
  3.14  subdivision 4, is amended to read: 
  3.15     Subd. 4.  [SALES AND USE TAX.] (a) The taxes imposed by 
  3.16  chapter 297A are due and payable to the commissioner monthly on 
  3.17  or before the 20th day of the month following the month in which 
  3.18  the taxable event occurred, or following another reporting 
  3.19  period as the commissioner prescribes or as allowed under 
  3.20  section 289A.18, subdivision 4, paragraph (f), except that use 
  3.21  taxes due on an annual use tax return as provided under section 
  3.22  289A.11, subdivision 1, are payable by April 15 following the 
  3.23  close of the calendar year. 
  3.24     (b) A vendor having a liability of $120,000 or more during 
  3.25  a fiscal year ending June 30 must remit the June liability for 
  3.26  the next year in the following manner: 
  3.27     (1) Two business days before June 30 of the year, the 
  3.28  vendor must remit 75 percent of the estimated June liability to 
  3.29  the commissioner.  
  3.30     (2) On or before August 14 of the year, the vendor must pay 
  3.31  any additional amount of tax not remitted in June. 
  3.32     (c) A vendor having a liability of $120,000 or more during 
  3.33  a fiscal year ending June 30 must remit all liabilities in the 
  3.34  subsequent calendar year by means of a funds transfer as defined 
  3.35  in section 336.4A-104, paragraph (a).  The funds transfer 
  3.36  payment date, as defined in section 336.4A-401, must be on or 
  4.1   before the 14th day of the month following the month in which 
  4.2   the taxable event occurred, or on or before the 14th day of the 
  4.3   month in which the sale is reported under section 289A.18, 
  4.4   subdivision 4, except for 75 percent of the estimated June 
  4.5   liability, which is due two business days before June 30.  The 
  4.6   remaining amount of the June liability is due on August 14.  If 
  4.7   the date the tax is due is not a funds transfer business day, as 
  4.8   defined in section 336.4A-105, paragraph (a), clause (4), the 
  4.9   payment date must be on or before the funds transfer business 
  4.10  day next following the date the tax is due. 
  4.11     (d) If the vendor required to remit by electronic funds 
  4.12  transfer as provided in paragraph (c) is unable due to 
  4.13  reasonable cause to determine the actual sales and use tax due 
  4.14  on or before the due date for payment, the vendor may remit an 
  4.15  estimate of the tax owed using one of the following options: 
  4.16     (1) 100 percent of the tax reported on the previous month's 
  4.17  sales and use tax return; 
  4.18     (2) 100 percent of the tax reported on the sales and use 
  4.19  tax return for the same month in the previous calendar year; or 
  4.20     (3) 95 percent of the actual tax due. 
  4.21     Any additional amount of tax that is not remitted on or 
  4.22  before the due date for payment, must be remitted with the 
  4.23  return.  If a vendor fails to remit the actual liability or does 
  4.24  not remit using one of the estimate options by the due date for 
  4.25  payment, the vendor must remit actual liability as provided in 
  4.26  paragraph (c) in all subsequent periods.  This paragraph does 
  4.27  not apply to the June sales and use tax liability. 
  4.28     Sec. 3.  [EFFECTIVE DATE.] 
  4.29     Sections 1 and 2 are effective for sales and purchases made 
  4.30  after June 30, 1999.