SF 2389

as introduced - 88th Legislature (2013 - 2014) Posted on 03/11/2014 10:15am

A bill for an act
relating to taxation; sales and use; tobacco; liquor; mortgage registry and deed;
property; local government aid; county program aid; renters' property tax refund;
eliminating certain accelerated payment requirements; appropriating money;
amending Minnesota Statutes 2012, sections 287.12; 287.29, subdivision 1;
289A.18, subdivision 4; 289A.40, subdivision 4; 289A.60, subdivision 21;
290A.07, subdivision 2a; 297F.09, subdivisions 1, 2; 297F.25, subdivision
2; Minnesota Statutes 2013 Supplement, sections 289A.20, subdivision 4;
477A.015; proposing coding for new law in Minnesota Statutes, chapter 290;
repealing Minnesota Statutes 2012, sections 287.31, subdivision 3; 289A.60,
subdivision 15; 297F.09, subdivision 10; 297G.09, subdivision 9.

BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA:

Section 1.

Minnesota Statutes 2012, section 287.12, is amended to read:

287.12 TAXES, HOW APPORTIONED.

(a) All taxes paid to the county treasurer under the provisions of sections 287.01
to 287.12 must be apportioned, 97 percent to the general fund of the state, and three
percent to the county revenue fund.

(b) On or before the 20th day of each month the county treasurer shall determine and
pay to the commissioner of revenue for deposit in the state treasury and credit to the general
fund the state's portion of the receipts from the mortgage registry tax during the preceding
month subject to the electronic payment requirements of section 270C.42. The county
treasurer shall provide any related reports requested by the commissioner of revenue.

deleted text begin (c) Counties must remit the state's portion of the June receipts collected through June
25 and the estimated state's portion of the receipts to be collected during the remainder of
the month to the commissioner of revenue two business days before June 30 of each year.
The remaining amount of the June receipts is due on August 20.
deleted 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 2012, section 287.29, subdivision 1, is amended to read:

Subdivision 1.

Appointment and payment of tax proceeds.

(a) The proceeds of
the taxes levied and collected under sections 287.21 to 287.39 must be apportioned, 97
percent to the general fund of the state, and three percent to the county revenue fund.

(b) On or before the 20th day of each month, the county treasurer shall determine
and pay to the commissioner of revenue for deposit in the state treasury and credit to the
general fund the state's portion of the receipts for deed tax from the preceding month
subject to the electronic transfer requirements of section 270C.42. The county treasurer
shall provide any related reports requested by the commissioner of revenue.

deleted text begin (c) Counties must remit the state's portion of the June receipts collected through June
25 and the estimated state's portion of the receipts to be collected during the remainder of
the month to the commissioner of revenue two business days before June 30 of each year.
The remaining amount of the June receipts is due on August 20.
deleted 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 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. 4.

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.

deleted text begin (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:
deleted text end

deleted text begin (1) Two business days before June 30 of the year, the vendor must remit 90 percent
of the estimated June liability to the commissioner.
deleted text end

deleted text begin (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 of deleted text begin :
deleted text end

deleted text begin (1) deleted text end $10,000 or more deleted text begin , but less than $120,000 deleted text end during a fiscal year ending June 30 deleted 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 4 deleted text begin ; or deleted 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. 5.

Minnesota Statutes 2012, section 289A.40, subdivision 4, is amended to read:

Subd. 4.

Property tax refund claims.

A property tax refund claim under chapter
290A is not allowed if the initial claim is filed more than one year after the original due
date for filing the claim new text begin for refunds under section 290A.04, subdivision 2 or 2h new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for refund claims based on taxes
payable in 2014 and thereafter.
new text end

Sec. 6.

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. 7.

new text begin [290.0693] RENTERS' PROPERTY TAX CREDIT.
new text end

new text begin Subdivision 1. new text end

new text begin Credit allowed. new text end

new text begin An individual or married couple filing jointly is
allowed a credit in the amount authorized under section 290A.04, subdivision 2a.
new text end

new text begin Subd. 2. new text end

new text begin Credit refundable. new text end

new text begin If the amount of credit that the taxpayer is eligible
to receive under subdivision 1 exceeds the taxpayer's tax liability under this chapter, the
commissioner shall refund the excess to the applicant.
new text end

new text begin Subd. 3. new text end

new text begin Appropriation. new text end

new text begin The amount necessary to pay the refund under this section
is appropriated from the general fund to the commissioner of revenue.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for rent paid in calendar year 2014
and thereafter.
new text end

Sec. 8.

Minnesota Statutes 2012, section 290A.07, subdivision 2a, is amended to read:

Subd. 2a.

Time new text begin or method new text end of payment to renter or manufactured home
homeowner.

A claimant who is deleted text begin a renter or deleted text end a homeowner who occupies a manufactured
home, as defined in section 273.125, subdivision 8, paragraph (c), or a park trailer taxed as
a manufactured home under section 168.012, subdivision 9, shall receive full payment
after August 1 and before August 15 or 60 days after receipt of the application, whichever
is later new text begin . A renter eligible for a refund under section 290A.04, subdivision 2a, must claim
the refund amount as a credit under section 290.0693 new text end .

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for property taxes payable in 2013
and thereafter.
new text end

Sec. 9.

Minnesota Statutes 2012, section 297F.09, subdivision 1, is amended to read:

Subdivision 1.

Monthly return; cigarette distributor.

On or before the 18th day
of each calendar month, a distributor with a place of business in this state shall file a
return with the commissioner showing the quantity of cigarettes manufactured or brought
in from outside the state or purchased during the preceding calendar month and the
quantity of cigarettes sold or otherwise disposed of in this state and outside this state
during that month. A licensed distributor outside this state shall in like manner file a
return showing the quantity of cigarettes shipped or transported into this state during the
preceding calendar month. Returns must be made in the form and manner prescribed by
the commissioner and must contain any other information required by the commissioner.
The return must be accompanied by a remittance for the full unpaid tax liability shown by
it. deleted text begin For distributors subject to the accelerated tax payment requirements in subdivision 10,
the return for the May liability is due two business days before June 30th of the year and
the return for the June liability is due on or before August 18th of the year.
deleted 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

Sec. 10.

Minnesota Statutes 2012, section 297F.09, subdivision 2, is amended to read:

Subd. 2.

Monthly return; tobacco products distributor.

new text begin (a) new text end On or before the 18th
day of each calendar month, a distributor with a place of business in this state shall file
a return with the commissioner showing the quantity and wholesale sales price of each
tobacco product:

(1) brought, or caused to be brought, into this state for sale; and

(2) made, manufactured, or fabricated in this state for sale in this state, during the
preceding calendar month.

new text begin (b) new text end Every licensed distributor outside this state shall in like manner file a return
showing the quantity and wholesale sales price of each tobacco product shipped or
transported to retailers in this state to be sold by those retailers, during the preceding
calendar month. Returns must be made in the form and manner prescribed by the
commissioner and must contain any other information required by the commissioner.
The return must be accompanied by a remittance for the full tax liability shown. deleted text begin For
distributors subject to the accelerated tax payment requirements in subdivision 10, the
return for the May liability is due two business days before June 30th of the year and the
return for the June liability is due on or before August 18th of the year.
deleted 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

Sec. 11.

Minnesota Statutes 2012, section 297F.25, subdivision 2, is amended to read:

Subd. 2.

Payment.

Each taxpayer must remit payments of the taxes to the
commissioner on the same dates prescribed under section 297F.09, subdivision 1, for
cigarette tax returns deleted text begin , including the accelerated remittance of the June liability deleted 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

Sec. 12.

Minnesota Statutes 2013 Supplement, section 477A.015, is amended to read:

477A.015 PAYMENT DATES.

The commissioner of revenue shall make the payments of local government aid to
affected taxing authorities in deleted text begin two deleted text end new text begin four new text end installments on new text begin March 15, new text end July deleted text begin 20 and December 26
deleted text end new text begin 15, September 15, and November 15 new text end annually.

When the commissioner of public safety determines that a local government has
suffered financial hardship due to a natural disaster, the commissioner of public safety
shall notify the commissioner of revenue, who shall make payments of aids under sections
477A.011 to 477A.014, which are otherwise due on deleted text begin December 26 deleted text end new text begin November 15 new text end , as soon
as is practical after the determination is made but not before July 20.

The commissioner may pay all or part of the payments of aids under sections
477A.011 to 477A.014, which are due on deleted text begin December 26 deleted text end new text begin November 15 new text end at any time after
August 15 if a local government requests such payment as being necessary for meeting its
cash flow needs. deleted text begin For aids payable in 2013 only, a city that is located in an area deemed a
disaster area during the month of April 2013, as defined in section 12A.02, subdivision 5,
shall receive its December 26, 2013 payment with its July 20, 2013 payment.
deleted text end

new text begin EFFECTIVE DATE. new text end

new text begin This section is effective for aids payable in calendar year
2015 and thereafter.
new text end

Sec. 13. new text begin REPEALER.
new text end

new text begin (a) Minnesota Statutes 2012, section 287.31, subdivision 3, new text end new text begin is repealed.
new text end

new text begin (b) Minnesota Statutes 2012, sections 289A.60, subdivision 15; 297F.09, subdivision
10; and 297G.09, subdivision 9, new text end new text begin are repealed.
new text end

new text begin EFFECTIVE DATE. new text end

new text begin Paragraph (a) is effective the day following final enactment.
Paragraph (b) is effective beginning with June 2014 tax liabilities.
new text end