Minnesota Legislature
SF 836
as introduced - 85th Legislature (2007 - 2008) Posted on 12/15/2009 12:00am
Current Version - as introduced
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A bill for an act
relating to taxation; imposing an excise tax on paint; amending Minnesota
Statutes 2006, sections 270C.56, subdivision 1; 289A.01; 289A.02, subdivision
5; 289A.12, by adding a subdivision; 289A.18, by adding a subdivision;
289A.19, by adding a subdivision; 289A.20, by adding a subdivision; 289A.56,
subdivision 3; proposing coding for new law as Minnesota Statutes, chapter 297J.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2006, section 270C.56, subdivision 1, is amended to read:
Subdivision 1.
Liability imposed.
A person who, either singly or jointly with
others, has the control of, supervision of, or responsibility for filing returns or reports,
paying taxes, or collecting or withholding and remitting taxes and who fails to do so, or a
person who is liable under any other law, is liable for the payment of taxes, penalties, and
interest arising under chapters 295, 296A, 297A, 297F, deleted text begin anddeleted text end 297G, new text begin and 297J, new text end or sections
290.92 and 297E.02.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to paint shipped after September 30, 2007.
new text end
Sec. 2.
Minnesota Statutes 2006, section 289A.01, is amended to read:
289A.01 APPLICATION OF CHAPTER.
This chapter applies to laws administered by the commissioner under chapters 290,
290A, 291, deleted text begin anddeleted text end 297A, new text begin and 297J, new text end and sections 298.01 and 298.015.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to paint shipped after September 30, 2007.
new text end
Sec. 3.
Minnesota Statutes 2006, section 289A.02, subdivision 5, is amended to read:
Subd. 5.
Other words.
Unless specifically defined in this chapter, or unless the
context clearly indicates otherwise, the words used in this chapter have the same meanings
as they are defined in chapters 290, 290A, 291, deleted text begin anddeleted text end 297Anew text begin , and 297Jnew text end .
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to paint shipped after September 30, 2007.
new text end
Sec. 4.
Minnesota Statutes 2006, section 289A.12, is amended by adding a subdivision
to read:
new text begin Subd. 4a. new text end
new text begin Paint tax returns. new text end
new text begin
(a) For taxes imposed under chapter 297J, a return
for the preceding taxable period must be filed with the commissioner in the form the
commissioner prescribes. The return must be verified by a written declaration that it is
made under the criminal penalties for making a false return, and must contain a confession
of judgment for the amount of the tax shown due, to the extent not timely paid.
new text end
new text begin
(b) A paint wholesaler and any person who receives paint from someone other than a
wholesaler or retailer must file a return. The return must be signed by the person filing it
or by the person's agent duly authorized in writing.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to paint shipped after September 30, 2007.
new text end
Sec. 5.
Minnesota Statutes 2006, section 289A.18, is amended by adding a subdivision
to read:
new text begin Subd. 6. new text end
new text begin Paint tax returns. new text end
new text begin
A return under section 289A.12, subdivision 4a, is due
on or before the 20th day of the month following the month in which the tax liability is
incurred.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to paint shipped after September 30, 2007.
new text end
Sec. 6.
Minnesota Statutes 2006, section 289A.19, is amended by adding a subdivision
to read:
new text begin Subd. 7. new text end
new text begin Paint tax returns. new text end
new text begin
The commissioner may extend the time for filing a
paint tax return by up to 60 days for good cause.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to paint shipped after September 30, 2007.
new text end
Sec. 7.
Minnesota Statutes 2006, section 289A.20, is amended by adding a subdivision
to read:
new text begin Subd. 6. new text end
new text begin Paint tax. new text end
new text begin
Paint taxes are due on or before the 20th day of the month
following the month in which the tax liability is to be incurred.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to paint shipped after September 30, 2007.
new text end
Sec. 8.
Minnesota Statutes 2006, section 289A.56, subdivision 3, is amended to read:
Subd. 3.
Withholding tax, entertainer withholding tax, withholding
from payments to out-of-state contractors, estate tax, new text begin paint tax, new text end and sales tax
overpayments.
When a refund is due for overpayments of withholding tax, entertainer
withholding tax, new text begin paint tax, new text end or withholding from payments to out-of-state contractors,
interest is computed from the date of payment to the date the refund is paid or credited.
For purposes of this subdivision, the date of payment is the later of the date the tax was
finally due or was paid.
For the purposes of computing interest on estate tax refunds, interest is paid from
the later of the date of overpayment, the date the estate tax return is due, or the date the
original estate tax return is filed to the date the refund is paid.
For purposes of computing interest on sales and use tax refunds, interest is paid from
the date of payment to the date the refund is paid or credited, if the refund claim includes a
detailed schedule reflecting the tax periods covered in the claim. If the refund claim
submitted does not include a detailed schedule reflecting the tax periods covered in the
claim, interest is computed from the date the claim was filed.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to paint shipped after September 30, 2007.
new text end
Sec. 9.
new text begin
[297J.01] DEFINITIONS.
new text end
new text begin Subdivision 1. new text end
new text begin Scope. new text end
new text begin
For purposes of this chapter, the following terms have the
meanings given, unless the context clearly requires otherwise.
new text end
new text begin Subd. 2. new text end
new text begin Commissioner. new text end
new text begin
"Commissioner" means the commissioner of revenue.
new text end
new text begin Subd. 3. new text end
new text begin Paint. new text end
new text begin
(a) "Paint" means a fluid, semifluid, or other material intended to be
used as a coating, which changes to a solid film when applied to a metal, wood, stone,
paper, leather, cloth, plastic, or other surface. Paint includes fluids with a suspension of
finely divided coloring matter, stains, and varnishes.
new text end
new text begin
(b) Paint does not include:
new text end
new text begin
(1) printing ink or materials that become part of the substrate, such as the pigment in
a plastic article; or
new text end
new text begin
(2) materials that are bonded to the substrate, such as by electroplating or ceramic
glazing.
new text end
new text begin Subd. 4. new text end
new text begin Person. new text end
new text begin
"Person" means an individual or any entity.
new text end
new text begin Subd. 5. new text end
new text begin Retail outlet. new text end
new text begin
"Retail outlet" means a location in this state at which
consumers may purchase paint.
new text end
new text begin Subd. 6. new text end
new text begin Retailer. new text end
new text begin
"Retailer" means a person who sells paint at a retail outlet.
new text end
new text begin Subd. 7. new text end
new text begin Wholesaler. new text end
new text begin
"Wholesaler" means any person who sells or otherwise
furnishes for resale purposes, from a stock maintained inside or outside of the state, paint
to one or more retailers or consumers within the state. Wholesaler includes a manufacturer
of paint who sells paint directly to retailers or consumers.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to paint shipped after September 30, 2007.
new text end
Sec. 10.
new text begin
[297J.02] PAINT TAX.
new text end
new text begin Subdivision 1. new text end
new text begin Imposition. new text end
new text begin
A tax is imposed on the sale or transfer of paint by
a wholesaler equal to five cents per United States gallon. The tax is payable by the
wholesaler in the manner and at the times provided in chapter 289A. Liability for the tax is
incurred when the paint is shipped or delivered to a retail outlet, a retailer for sale at a retail
outlet, or another person for resale or use in this state or when the paint is received by the
customer's authorized representative at the wholesaler's place of business in this state.
new text end
new text begin Subd. 2. new text end
new text begin Use tax. new text end
new text begin
A person that receives paint for resale or use in Minnesota,
other than from a wholesaler that paid the tax under subdivision 1 as evidenced by a
paint tax identification number appearing on the invoice or from a retailer, is subject to
a tax equal to five cents per United States gallon. The tax is payable in the manner and
at the times provided in chapter 289A. Liability for the tax is incurred when the person
receives the paint.
new text end
new text begin Subd. 3. new text end
new text begin Computation. new text end
new text begin
In computing the tax under this section, a proportional tax
at a like rate on all fractional parts of a United States gallon must be paid.
new text end
new text begin Subd. 4. new text end
new text begin Metric conversion. new text end
new text begin
The commission may establish a date and procedure
for the conversion of the excise tax computation and reporting from rates expressed in
gallons to rates expressed in metric volumes. The official conversion factor is one liter
equals United States gallons.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to paint shipped after September 30, 2007.
new text end
Sec. 11.
new text begin
[297J.03] DEPOSIT OF FUNDS.
new text end
new text begin
The commissioner shall deposit all tax, penalties, and interest collected under this
chapter in a lead risk assessment and lead hazard reduction account in the general fund.
Money in the lead risk assessment and lead hazard reduction account must be used to
fund lead risk assessment and lead hazard reduction activities that an assessing agency
conducts under section 144.9504. The commissioner of health shall establish a method
of distributing funds from the lead risk assessment and lead hazard reduction account
throughout the state with priority on allocating funds to areas where children and pregnant
women are at the greatest risk of developing elevated blood lead levels.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to paint shipped after September 30, 2007.
new text end
Sec. 12.
new text begin
[297J.04] TAX PERMIT.
new text end
new text begin Subdivision 1. new text end
new text begin Permit required. new text end
new text begin
Every wholesaler must apply to the commissioner,
on a form prescribed by the commissioner, for a paint tax identification number and paint
tax permit. A permit is not assignable and is valid only for the wholesaler in whose name
it is issued.
new text end
new text begin Subd. 2. new text end
new text begin Inclusion on invoice. new text end
new text begin
The wholesaler's paint tax identification number
must be included on every invoice for paint sent to a Minnesota retailer or consumer.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment
and applies to paint shipped after September 30, 2007.
new text end