Minnesota Legislature
SF 1006
as introduced - 87th Legislature (2011 - 2012) Posted on 06/08/2012 03:27pm
Current Version - as introduced
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A bill for an act
relating to taxation; sales and use; making technical changes necessary to
conform to streamlined sales and use tax agreement; amending Minnesota
Statutes 2010, sections 297A.62, by adding a subdivision; 297A.63, by adding a
subdivision; 297A.668, subdivision 7, by adding a subdivision.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2010, section 297A.62, is amended by adding a
subdivision to read:
new text begin Subd. 5. new text end
new text begin Transitional period for services. new text end
new text begin
When there is a change in the rate of tax
imposed by this section, the following transitional period shall apply to the retail sale of
services covering a billing period starting before and ending after the statutory effective
date of the rate change:
new text end
new text begin
(1) for a rate increase, the new rate shall apply to the first billing period starting
on or after the effective date; and
new text end
new text begin
(2) for a rate decrease, the new rate shall apply to bills rendered on or after the
effective date.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 2.
Minnesota Statutes 2010, section 297A.63, is amended by adding a subdivision
to read:
new text begin Subd. 3. new text end
new text begin Transitional period for services. new text end
new text begin
When there is a change in the rate of
tax imposed by this section, the following transitional period shall apply to the taxable
services purchased for use, storage, distribution, or consumption in this state when the
service purchased covers a billing period starting before and ending after the statutory
effective date of the rate change:
new text end
new text begin
(1) for a rate increase, the new rate shall apply to the first billing period starting
on or after the effective date; and
new text end
new text begin
(2) for a rate decrease, the new rate shall apply to bills rendered on or after the
effective date.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective the day following final enactment.
new text end
Sec. 3.
Minnesota Statutes 2010, section 297A.668, subdivision 7, is amended to read:
Subd. 7.
new text begin Advertising and promotional new text end direct mail.
(a) Notwithstanding other
subdivisions of this section,new text begin the provisions in paragraphs (b) to (e) apply to the sale of
advertising and promotional direct mail. "Advertising and promotional direct mail" means
printed material that is direct mail as defined in section 297A.61, subdivision 35, the
primary purpose of which is to attract public attention to a product, person, business, or
organization, or to attempt to sell, popularize, or secure financial support for a person,
business, organization, or product. "Product" includes tangible personal property, a digital
product transferred electronically, or a service.
new text end
new text begin (b)new text end A purchaser ofnew text begin advertising and promotionalnew text end direct mail deleted text begin that is not a holder of
a direct pay permit shall provide to the seller, in conjunction with the purchase, either a
direct mail form ordeleted text end new text begin may provide the seller with either:
new text end
new text begin
(1) a fully completed exemption certificate as described in section 297A.72
indicating that the purchaser is authorized to pay any sales or use tax due on purchases
made by the purchaser directly to the commissioner under section 297A.89;
new text end
new text begin
(2) a fully completed exemption certificate claiming an exemption for direct mail; or
new text end
new text begin (3)new text end information deleted text begin to showdeleted text end new text begin showingnew text end the jurisdictions to which thenew text begin advertising and
promotionalnew text end direct mail isnew text begin to benew text end delivered to recipients.
deleted text begin (1) Upon receipt of the direct mail form,deleted text end new text begin (c) In the absence of bad faith, if the
purchaser provides one of the exemption certificates indicated in paragraph (b), clauses (1)
and (2),new text end the seller is relieved of all obligations to collect, pay, or remit the applicable tax
and the purchaser is obligated to pay or remit the deleted text begin applicable tax on a direct pay basis. A
direct mail form remains in effect for all future sales of direct mail by the seller to the
purchaser until it is revoked in writing.deleted text end new text begin tax on any transaction involving advertising and
promotional direct mail to which the certificate applies. The purchaser shall source the
sale to the jurisdictions to which the advertising and promotional direct mail is to be
delivered to the recipients of the mail, and shall report and pay any applicable tax due.
new text end
deleted text begin (2) Upon receipt ofdeleted text end new text begin (d) If the purchaser provides the sellernew text end information deleted text begin from the
purchaserdeleted text end showing the jurisdictions to which thenew text begin advertising and promotionalnew text end direct mail
isnew text begin to benew text end delivered to recipients, the seller shallnew text begin source the sale to the jurisdictions to which
the advertising and promotional direct mail is to be delivered and shallnew text end collectnew text begin and remitnew text end
thenew text begin applicablenew text end tax deleted text begin according to the delivery information provided by the purchaserdeleted text end . In
the absence of bad faith, the seller is relieved of any further obligation to collectnew text begin any
additionalnew text end tax on deleted text begin any transaction for whichdeleted text end new text begin the sale of advertising and promotional direct
mail wherenew text end the seller has deleted text begin collected tax pursuantdeleted text end new text begin sourced the sale accordingnew text end to the delivery
information provided by the purchaser.
deleted text begin (b)deleted text end new text begin (e)new text end If the purchaser deleted text begin of direct maildeleted text end does not deleted text begin have a direct pay permit and does
notdeleted text end provide the seller with deleted text begin either a direct mail form or delivery information, as required
by paragraph (a), the seller shall collect the tax according todeleted text end new text begin any of the items listed in
paragraph (b), the sale shall be sourced undernew text end subdivision 2, paragraph (f). Nothing in
this paragraph limits a purchaser's obligation for sales or use tax to any state to which the
direct mail is delivered.
deleted text begin
(c) If a purchaser of direct mail provides the seller with documentation of direct
pay authority, the purchaser is not required to provide a direct mail form or delivery
information to the seller.
deleted text end
new text begin
(f) This subdivision does not apply to printed materials that result from developing
billing information or providing any data processing service that is more than incidental
to producing the printed materials, regardless of whether advertising and promotional
direct mail is included in the same mailing.
new text end
new text begin
(g) If a transaction is a bundled transaction that includes advertising and promotional
direct mail, this subdivision applies only if the primary purpose of the transaction is the sale
of products or services that meet the definition of advertising and promotional direct mail.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
June 30, 2011.
new text end
Sec. 4.
Minnesota Statutes 2010, section 297A.668, is amended by adding a
subdivision to read:
new text begin Subd. 7a. new text end
new text begin Other direct mail. new text end
new text begin
(a) Notwithstanding other subdivisions of this section,
the provisions in paragraphs (b) and (c) apply to the sale of other direct mail. "Other direct
mail" means printed material that is direct mail as defined in section 297A.61, subdivision
35, but is not advertising and promotional direct mail as described in subdivision 7,
regardless of whether advertising and promotional direct mail is included in the same
mailing. Other direct mail includes, but is not limited to:
new text end
new text begin
(1) direct mail pertaining to a transaction between the purchaser and addressee,
where the mail contains personal information specific to the addressee including, but not
limited to, invoices, bills, statements of account, and payroll advices;
new text end
new text begin
(2) any legally required mailings including, but not limited to, privacy notices,
tax reports, and stockholder reports; and
new text end
new text begin
(3) other nonpromotional direct mail delivered to existing or former shareholders,
customers, employees, or agents including, but not limited to, newsletters and
informational pieces.
new text end
new text begin
Other direct mail does not include printed materials that result from developing
billing information or providing any data processing service that is more than incidental to
producing the other direct mail.
new text end
new text begin
(b) A purchaser of other direct mail may provide the seller with either a fully
completed exemption certificate as described in section 297A.72 indicating that the
purchaser is authorized to pay any sales or use tax due on purchases made by the purchaser
directly to the commissioner under section 297A.89, or a fully completed exemption
certificate claiming an exemption for direct mail. If the purchaser provides one of the
exemption certificates listed, then the seller, in the absence of bad faith, is relieved of all
obligations to collect, pay, or remit the tax on any transaction involving other direct mail
to which the certificate applies. The purchaser shall source the sale to the jurisdictions to
which the other direct mail is to be delivered to the recipients of the mail, and shall report
and pay any applicable tax due.
new text end
new text begin
(c) If the purchaser does not provide the seller with a fully completed exemption
certificate claiming either exemption listed in paragraph (b), the sale shall be sourced
according to subdivision 2, paragraph (d).
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective for sales and purchases made after
June 30, 2011.
new text end