Minnesota Legislature
SF 2094
as introduced - 88th Legislature (2013 - 2014) Posted on 02/28/2014 09:43am
Current Version - as introduced
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A bill for an act
relating to taxation; sales and use; eliminating accelerated payment requirements;
amending Minnesota Statutes 2012, sections 289A.18, subdivision 4; 289A.60,
subdivision 21; Minnesota Statutes 2013 Supplement, section 289A.20,
subdivision 4; repealing Minnesota Statutes 2012, section 289A.60, subdivision
15.
BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:
Section 1.
Minnesota Statutes 2012, section 289A.18, subdivision 4, is amended to read:
Subd. 4.
Sales and use tax returns.
(a) Sales and use tax returns must be filed on or
before the 20th day of the month following the close of the preceding reporting period,
except that annual use tax returns provided for under section 289A.11, subdivision 1, must
be filed by April 15 following the close of the calendar year, in the case of individuals.
Annual use tax returns of businesses, including sole proprietorships, and annual sales tax
returns must be filed by February 5 following the close of the calendar year.
deleted text begin
(b) Returns for the June reporting period filed by retailers required to remit their
June liability under section 289A.20, subdivision 4, paragraph (b), are due on or before
August 20.
deleted text end
deleted text begin (c)deleted text end new text begin (b)new text end If a retailer has an average sales and use tax liability, including local sales and
use taxes administered by the commissioner, equal to or less than $500 per month in any
quarter of a calendar year, and has substantially complied with the tax laws during the
preceding four calendar quarters, the retailer may request authorization to file and pay the
taxes quarterly in subsequent calendar quarters. The authorization remains in effect during
the period in which the retailer's quarterly returns reflect sales and use tax liabilities of less
than $1,500 and there is continued compliance with state tax laws.
deleted text begin (d)deleted text end new text begin (c)new text end If a retailer has an average sales and use tax liability, including local sales and
use taxes administered by the commissioner, equal to or less than $100 per month during a
calendar year, and has substantially complied with the tax laws during that period, the
retailer may request authorization to file and pay the taxes annually in subsequent years.
The authorization remains in effect during the period in which the retailer's annual returns
reflect sales and use tax liabilities of less than $1,200 and there is continued compliance
with state tax laws.
deleted text begin (e)deleted text end new text begin (d)new text end The commissioner may also grant quarterly or annual filing and payment
authorizations to retailers if the commissioner concludes that the retailers' future tax
liabilities will be less than the monthly totals identified in paragraphs deleted text begin (c)deleted text end new text begin (b)new text end and deleted text begin (d)deleted text end new text begin (c)new text end .
An authorization granted under this paragraph is subject to the same conditions as an
authorization granted under paragraphs deleted text begin (c)deleted text end new text begin (b)new text end and deleted text begin (d)deleted text end new text begin (c)new text end .
deleted text begin (f)deleted text end new text begin (e)new text end A taxpayer who is a materials supplier may report gross receipts either on:
(1) the cash basis as the consideration is received; or
(2) the accrual basis as sales are made.
As used in this paragraph, "materials supplier" means a person who provides materials
for the improvement of real property; who is primarily engaged in the sale of lumber and
building materials-related products to owners, contractors, subcontractors, repairers,
or consumers; who is authorized to file a mechanics lien upon real property and
improvements under chapter 514; and who files with the commissioner an election to file
sales and use tax returns on the basis of this paragraph.
deleted text begin (g)deleted text end new text begin (f)new text end Notwithstanding paragraphs (a) to deleted text begin (f)deleted text end new text begin (e)new text end , a seller that is not a Model 1, 2, or
3 seller, as those terms are used in the Streamlined Sales and Use Tax Agreement, that
does not have a legal requirement to register in Minnesota, and that is registered under the
agreement, must file a return by February 5 following the close of the calendar year in
which the seller initially registers, and must file subsequent returns on February 5 on an
annual basis in succeeding years. Additionally, a return must be submitted on or before
the 20th day of the month following any month by which sellers have accumulated state
and local tax funds for the state in the amount of $1,000 or more.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with June 2014 tax
liabilities.
new text end
Sec. 2.
Minnesota Statutes 2013 Supplement, section 289A.20, subdivision 4, is
amended to read:
Subd. 4.
Sales and use tax.
(a) The taxes imposed by chapter 297A are due and
payable to the commissioner monthly on or before the 20th day of the month following the
month in which the taxable event occurred, or following another reporting period as the
commissioner prescribes or as allowed under section 289A.18, subdivision 4, paragraph deleted text begin (f)
deleted text end new text begin (e)new text end or deleted text begin (g)deleted text end new text begin (f)new text end , except that use taxes due on an annual use tax return as provided under section
289A.11, subdivision 1, are payable by April 15 following the close of the calendar year.
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(b) A vendor having a liability of $120,000 or more during a fiscal year ending June
30 must remit the June liability for the next year in the following manner:
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(1) Two business days before June 30 of the year, the vendor must remit 90 percent
of the estimated June liability to the commissioner.
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(2) On or before August 20 of the year, the vendor must pay any additional amount
of tax not remitted in June.
deleted text end
deleted text begin (c)deleted text end new text begin (b)new text end A vendor having a liability ofdeleted text begin :
deleted text end
deleted text begin (1)deleted text end $10,000 or moredeleted text begin , but less than $120,000deleted text end during a fiscal year ending June 30deleted text begin ,
2013, and fiscal years thereafter,deleted text end must remit by electronic means all liabilities on returns
due for periods beginning in all subsequent calendar years on or before the 20th day of
the month following the month in which the taxable event occurred, or on or before the
20th day of the month following the month in which the sale is reported under section
289A.18, subdivision 4deleted text begin ; ordeleted text end new text begin .
new text end
deleted text begin
(2) $120,000 or more, during a fiscal year ending June 30, 2009, and fiscal years
thereafter, must remit by electronic means all liabilities in the manner provided in
paragraph (a) on returns due for periods beginning in the subsequent calendar year, except
for 90 percent of the estimated June liability, which is due two business days before June
30. The remaining amount of the June liability is due on August 20.
deleted text end
deleted text begin (d)deleted text end new text begin (c)new text end Notwithstanding paragraph (b) deleted text begin or (c)deleted text end , a person prohibited by the person's
religious beliefs from paying electronically shall be allowed to remit the payment by mail.
The filer must notify the commissioner of revenue of the intent to pay by mail before
doing so on a form prescribed by the commissioner. No extra fee may be charged to a
person making payment by mail under this paragraph. The payment must be postmarked
at least two business days before the due date for making the payment in order to be
considered paid on a timely basis.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with June 2014 tax
liabilities.
new text end
Sec. 3.
Minnesota Statutes 2012, section 289A.60, subdivision 21, is amended to read:
Subd. 21.
Penalty for failure to make payment by electronic means.
In
addition to other applicable penalties imposed by this section, after notification from the
commissioner to the taxpayer that payments are required to be made by electronic means
under section 289A.20, subdivision 2, paragraph (e), or 4, paragraph deleted text begin (c)deleted text end new text begin (b)new text end , or 289A.26,
subdivision 2a, and the payments are remitted by some other means, there is a penalty in
the amount of five percent of each payment that should have been remitted electronically.
After the commissioner's initial notification to the taxpayer that payments are required to
be made by electronic means, the commissioner is not required to notify the taxpayer in
subsequent periods if the initial notification specified the amount of tax liability at which a
taxpayer is required to remit payments by electronic means. The penalty can be abated
under the abatement procedures prescribed in section 270C.34, subdivision 2, if the failure
to remit the payment electronically is due to reasonable cause.
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with June 2014 tax
liabilities.
new text end
Sec. 4. new text begin REPEALER.
new text end
new text begin
Minnesota Statutes 2012, section 289A.60, subdivision 15,
new text end
new text begin
is repealed.
new text end
new text begin EFFECTIVE DATE. new text end
new text begin
This section is effective beginning with June 2014 tax
liabilities.
new text end